NEW DELHI, Jan 21: Shares of HDFC Bank jumped nearly 2 per cent after the private sector lender reported 20 per cent rise in net profit in December 2018 quarter.
The private sector lender Saturday reported 20.3 per cent growth in net profit to Rs 5,585.9 crore for the third quarter ended December 31, mainly on account of higher net interest income.
The bank had posted a net profit of Rs 4,642.6 crore in the October-December quarter of 2017-18.
Shares of HDFC Bank opened at Rs 2,149, then surged further to Rs 2,165, registering a jump of 1.58 per cent over its last close.
Similar movement was seen on NSE, where the stock opened at Rs 2,139.95, then touched an intra-day high of Rs 2,166.50, up 1.70 per cent over its previous closing price.
During the reported quarter, total income of the lender rose to Rs 30,811.27 crore from Rs 24,450.44 crore in the year-ago period.
“In December quarter 2018-19, HDFC Bank’s operating profit was in line with our expectations, while bottom line was below our expectations by 5 per cent on account of higher provisions,” Elara Capital said in a research note adding that the company’s asset quality continues to remain robust except for some concerns in agri portfolio.
Net interest income (interest earned less interest expended) for the reported quarter grew 21.9 per cent to Rs 12,576.8 crore from Rs 10,314.3 crore in the year-ago period, driven by asset growth of 23.7 per cent and a core net interest margin of 4.3 per cent for the quarter, it said.
During the quarter, the bank’s gross non-performing assets (NPAs) rose to 1.38 per cent of the total advances, compared with 1.29 per cent at the end of the third quarter of 2017-18.
Net NPAs of the bank declined to 0.42 per cent of the assets in October-December 2018, against 0.44 per cent a year ago. (PTI)
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