HDFC Bank Q3 net up 20.3% to Rs5,585.85 cr as interest income soars 21.9%

The bank’s net interest income (difference between interest earned and expended) grew 21.9 per cent YoY to Rs12,576.75 crore, even as its provisions rose considerably in the third quarter.

The bank had posted a profit after tax of Rs4,642.60 crore in the similar quarter of the previous fiscal.

Net interest income (difference between interest earned and expended) of the bank rose to Rs12,576.75 crore up 21.9 per cent YoY. In the year ago, the bank had posted NII of Rs10,314.3 crore. The core net interest margin for Q3FY19 stood at 4.3 per cent.

Other income (non-interest revenue) grew by 27.2 per cent to Rs4,921.0 crore in Q3FY19. The core cost-to-income ratio for the quarter was at 39.5 per cent against 41.2 per cent in the year ago period.

Provisions in Q3FY19 rose 63.6 per cent to Rs2,211.53 crore, which included a charge of Rs322.4 crore towards contingent provisions.

HDFC Bank said its asset quality remained stable for the quarter with gross non-performing assets (NPA) at 1.38 per cent against 1.33 per cent at the end of Q2FY19 and 1.29 per cent in the year-ago period.

Net NPA as a percentage of net advances was 0.42 per cent compared to 0.44 per cent in the year-ago period and 0.40 per cent in Q2FY19.

HDFC Bank's total deposits rose 22 per cent YoY to Rs852,502 crore. Current account and savings account (CASA) deposits grew 13 per cent YoY with savings account deposits at Rs235,179 crore and current account deposits at Rs111,905 crore.

The bank said that the CASA deposits comprised 40.7 percent of the total deposits as of Q3Fy19. Their total advances at the end of the third quarter was Rs780,951 crore.

"The bank's continuing focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 122 percent, well above the regulatory requirement," said HDFC Bank in a statement.

The bank's Capital Adequacy Ratio (CAR) as per Basel Ill guidelines was at 17.3 per cent as on 31 December 2018.