Riding the wave of higher interest income, HDFC Bank reported its Q3 net profit as Rs.3,865.3 crore, a 15% increase.
An average assets growth rate of 18.6% paved the way for increased net interest income (= interest earned – interest expended) of Rs.8,309.1 crore, a jump of 17.6% from figures reported at the same time last year which stood at Rs.7,068.5 crore.
Income gathered from fees and commissions stood at Rs.3,142.7 crore, up 9.4% from last year. Growth was expected to be higher in this quarter, but the unexpected demonetization meant that the bank had to waive off ATM fees, merchant discount rate, and card fees.
The primary indicator, net interest income, stood strong at 4.1% for the quarter, and net interest margins (NIM) were lower by 20 basis points as compared to the same quarter last year.
Due to demonetization, the bank saw a huge rise in deposits in CASA (current accounts and savings accounts) and deposits in investments. The total deposits made rose a whopping 21.1% as compared to the same time last year, to Rs.6.34 lakh crore when taking into consideration FCNR (B) maturities in the same quarter.
The amount deposited in Current Accounts was 36.7% more than what was deposited in the same period last year, and the amount deposited in Savings Accounts was reported to be higher by 37.8%.