HDFC Bank's Q2 net profit rises 22.3% to Rs 11,125 crore

Mumbai: HDFC Bank on Saturday reported a 22.30 per cent jump in its consolidated net profit for the September quarter at Rs 11,125.21 crore, helped by a reduction in money set aside for bad loans. On a standalone basis, the largest private sector lender's net profit rose by over 20.1 per cent to Rs 10,605.78 crore as against Rs 8,834.31 crore in the year-ago period and Rs 9,196 crore in the preceding June quarter.

The core net interest income climbed 18.9 per cent to Rs 21,021 crore on the back of an over 23 per cent jump in advances, while the net interest margin was stable at 4.1 per cent. The other income showed a marginal 2.63 per cent growth to Rs 7,596 crore on account of a loss of Rs 253.1 crore on sale or revaluation of investments as against a gain of Rs 675 crore in the year-ago period.

The bank said the other income growth excluding the mark-to-market losses incurred amid the rising rates scenario stood at 16.7 per cent.

Amid the 'war for deposits', where some banks have reported a wide gap between advances and deposit growth, the lender reported a 21 per cent increase in the deposits. Share of the low-cost current and saving account deposits stood at 45.1 per cent as on September 30, 2022.

The overall share of gross non-performing assets improved to 1.23 per cent of the book as against 1.35 per cent in the year-ago period and 1.28 per cent three months ago.