HDFC Bank, India’s second-largest bank reported a healthy year-on-year (y-o-y) growth of 20.6% in Q2 profits for FY 2019 due to higher net interest income (NII), operating income and other types of incomes.
The bank saw its net profit rise to Rs.5,005.73 crore for the second quarter which ended September 30 as compared to a profit of Rs.4,151 crore which it made last year during the same period of time.
The net interest income, which is the difference between the interest earned and the interest expended rose by 20.6% to Rs.11,763.41 crore as compared to Rs.9,752.07 crore it made last year during the FY2018.
The other income which also includes core fee income, jumped 11.36% from Rs.3,605.90 crore to Rs.4,015.59 crore in the second quarter of the FY19.
The Gross non-performing assets (NPAs) were recorded at 1.33% for the second quarter, 1.26% a year ago.
The bank’s current account-savings account (CASA) deposit which contributed to a total of 42% of the total deposits saw a growth of 18.3%. The savings and current account deposits registered a growth of 18.7% and 17.7% respectively.
The provisions from the period July-September rose by 23.29% to Rs.1,819.96 crore as compared to Rs.1,476.19 crore during the same quarter a year ago.
The bank’s retail loan portfolio jumped 23.8% and the overall advances were recorded at Rs.7,50,838 crore.
The operating profit increased by 21.3% to Rs.9,479.95 crore.
Sources: MoneyControl, LiveMint, Bloomberg Quint, Reuters
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