HDFC Bank misses 30% profit mark second quarter in a row

HDFC Bank, India’s second largest private bank, has recorded a 25.1 per cent jump in net profit at Rs 2,325.7 crore for the third quarter of 2013-14 as against Rs 1,859.07 crore a year earlier.
This is the second consecutive quarter when the bank’s profit growth has come in below the 30 per cent mark. The bank had posted 30 per cent jump in net profit for every quarter for over a decade. The bank’s gross non-performing assets rose by 24 per cent to Rs 3,017 crore from Rs 2,432 crore but it maintained the NPA ratio at one per cent of advances.
HDFC Bank’s deputy MD Paresh Sukthankar said the bank does not have any fixation for the 30 per cent growth number and stressed that its profits are a function of conditions in the economy. Total income rose by 17.8 per cent to Rs 12,739 crore for the quarter.
The bank’s net interest income rose 16.4 per cent to Rs 4,634.8 crore. Net interest margin fell to 4.2 per cent from 4.3 per cent. Rikesh Parikh, vice president, Motilal Oswal Securities, said, “HDFC bank maintained its trend of delivering consistent earnings performance, by delivering 25 per cent growth over sequential quarter. PAT was in line with our estimates.