Mumbai, Jan. 18: HDFC Bank has once again recorded a 30 per cent growth in net profit at Rs 1,859.07 crore in the third quarter ended December 31 ' its strong performance anchored in a strong loan book and a jump in fee income.
The country's second largest private bank had earned a net profit of Rs 1,429.66 crore in the same period last year. The bank has posted a 30 per cent growth in net profit in the past few quarters.
HDFC Bank said total net advances as on December 31, 2012, stood at Rs 241,493 crore, an increase of 24.3 per cent over last year.
The mix of loans between the retail and wholesale segments stood at 53:47.
Within the retail category, auto loans accounted for the largest share with the bank disbursing Rs 30,041 crore of these loans against Rs 25,762 crore in the preceding year. Total retail advances rose to around Rs 129,958 crore, up nearly 30 per cent.
Other income (non-interest revenue) for the quarter ended December 2012 stood at Rs 1,798.9 crore against Rs 1,420 crore in the same quarter last year. The main contributor to other income during the period was fees and commissions of Rs 1,401.9 crore, which grew over 24 per cent.
Net interest income (interest earned less interest expended) also showed a strong 22 per cent growth to Rs 3,798.9 crore because of the robust loan growth and a net interest margin of 4.1 per cent in the quarter. However, gross NPAs rose to Rs 2,432.21 crore compared with Rs 2,020.58 crore in the third quarter of 2011-12.
Paresh Sukthankar, executive director at HDFC Bank, said most of the additions to bad loans came from the retail category.
"The bank, which had until the last quarter outperformed entire industry by reporting better asset quality, faced pressure on its asset quality this time around. Its gross and net NPA levels increased sequentially by 14 per cent and 28 per cent, on an absolute basis," said Vaibhav Agrawal, vice-president, research-banking at Angel Broking.
Diversified conglomerate ITC today said its net profit rose 20.62 per cent to Rs 2,051.85 crore for the third quarter ended December 2012, on the back of robust sales in cigarettes, farm and paper businesses. The company posted a net profit of Rs 1,700.98 crore in the same period last fiscal.
On a sequential basis, the percentage of gross NPAs also rose to 1 per cent of gross advances from 0.91 per cent in the second quarter.