HDFC Bank Q3 profit rises 20% on interest earnings, treasury income

It had reported net profit of Rs 2,325.7 crore in the October-December period of last fiscal, 2013-14.

By: Press Trust of India | Mumbai | Published: February 15, 2015 2:36:21 am

India’s second largest private lender HDFC Bank today reported 20.2 per cent increase in net profit to Rs 2,794.5 crore for the third quarter ended December 31, driven by a surge in core interest earnings.

It had reported net profit of Rs 2,325.7 crore in the October-December period of last fiscal, 2013-14.

The bank’s core net interest income grew 23 per cent to Rs 5,699 crore in the third quarter ended December 2014, while other income was up 18 per cent to Rs 2,534.9 crore. The other income included a 14 per cent uptick on fees and commission, a 23 per cent dip in forex and derivative revenue and a five-fold jump in treasury income.

Due to a fall in money market rates, HDFC Bank was able to save on the cost of funds, which helped the Q3 net interest margin to rise by 0.2 per cent to 4.4 per cent.

On the Reserve Bank being unhappy over lenders not cutting interest rates, HDFC Bank deputy managing director Paresh Sukthankar said at a press conference here that the bank will “re-calibrate” its base rate, or minimum rate of lending, by March.

He said the credit costs or provisioning costs in India are excluded from NIM computation and indicated that the criticism — that banks having high NIM are not passing the rate cut benefits to customers — may be unfounded.

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