HDFC Bank's third quarter earnings matched analysts' expectations on Monday. Profit increased 20 percent year-on-year to Rs 3,357 crore during the quarter, supported by operating profit, net interest income and other income despite higher tax cost and provisions.
Net interest income, the difference between interest earned and interest expended, climbed 24 percent to Rs 7,068.51 crore in Q3 compared to Rs 5,700 crore in year-ago period driven by average assets growth of 28.2 percent and a net interest margin for the quarter of 4.3 percent (against 4.4 percent Y-o-Y), says the country's second largest private sector bank.
Advances grew by 25.7 percent year-on-year to Rs 4.36 lakh crore while deposits increased by 26.5 percent to Rs 5.24 lakh crore in December quarter. "CASA deposits saw healthy growth with current account deposits growing by 29.7 percent over the previous year to reach Rs 74,044 crore and savings account deposits growing by 20.6 percent over the previous year to reach Rs 135,432 crore," it explains.