HDFC Bank Ltd on Monday said net profit for the April-June quarter rose 21% to Rs.2,233 crore from Rs.1,844 crore in the corresponding period in 2013, driven by higher demand for loans from companies .
Net interest income (NII), or the bank’s core income, increased 17% to Rs.5,171.61 crore, compared with Rs.4,418.70 crore in the corresponding quarter last year and accounted for 74% of the bank’s net revenues.
Retail loans grew at a slower pace of 14% led by demand for personal loans, credit cards and loans to individuals to buy two wheelers. Other income or income earned via fees, trading in foreign exchange and gain on revaluation or sale of investments, fell 3.9% to Rs.1,850.57 crore from Rs.1,925.60 crore in the corresponding previous quarter as the fees the bank earns from trading bonds and foreign exchange dropped.
Net non-performing assets stood at 0.3% of net advances, unchanged compared to the quarter ended June 2013, while provisions and contingencies for the quarter fell 8.4% to Rs.483 crore, from Rs.527 last year same quarter, though higher than the Rs286 crore reported in the quarter ended March 2014, as the bank provided an extra Rs40 crore to cover for unhedged foreign exchange exposure of its corporate clients to comply with recent Rerserve Bank of India (RBI) norms.
