HDFC Bank on Thursday said it has registered a 20.15% rise in its net profit in the first quarter of this fiscal as against last year. The country's second-largest private lender said the year-on-year rise in net profit was because of higher interest and fee income, reported LiveMint.
The the bank earned Rs 3,238.91 crore between April 1 and June 30 this year. Last year this figure was Rs 2,695.72 crore. The bank pushed up its numbers as the net interest income, or the core income a bank earns by giving loans, increased by 21.8% to Rs 7,781.44 crore from Rs 6,388.70 crore last year. The non-interest revenue of the bank also grew by 14% to Rs 2,806.61 crore from Rs 2,461.91 crore during the same period. HDFC's total income was up by 17.08% to Rs 19,322 crore from Rs 16,502 crore last year, reported International Business Times.
In December, the Reserve Bank of India conducted an asset quality review and asked banks to recognise visibly stressed assets as non-performing. Although this had an impact on the profitability of some banks, HDFC continued to report steady asset quality trends.
Gross NPAs at the bank jumped 34.7% to Rs 4,920.89 crore from Rs 3,652.23 crore in one year. Net NPAs were at 0.32% in the June quarter compared to 0.27% in the previous year. According to International Business Times, the bank's capital adequacy ratio, which measures a bank's capital as against its risks and liabilities, was 15.5% this quarter.