HDFC Bank has posted a lower quarterly profit growth of 15.1 per cent at Rs 3,865.3 crore for the December 2016 quarter due to the margin compression following the demonetisation and foreign currency deposit redemptions.
The bank’s profit had risen by 20.4 per cent in the September quarter and 20.1 per cent to Rs 3,356.84 crore in December 2015 quarter.
The bank saw redemptions of $ 3 billion worth of NRI deposits raised under a special window opened by the RBI in 2013 which led to a $ 2-billion reduction in the foreign currency loan book.
Current and savings account deposit growth saw a spurt largely attributable to the demonetisation exercise, with current account deposits growing by 36.7 per cent over the previous year to reach Rs 1,01,239 crore and savings account deposits growing by 37.8 per cent over the previous year to reach Rs 186,634 crore, the bank said.
Despite the banknote ban hitting credit demand in many sectors, HDFC Bank said its domestic advances as of end-December grew about
17.5 per cent from a year earlier. That helped net interest income for the quarter grow 17.6 per cent to Rs 8,309 crore, HDFC Bank said.