Driven by interest and non-interest income, the country's second-largest private sector lender HDFC Bank on Saturday reported a 32.8 percent growth in net profit to Rs 7,416.5 crore for the third quarter ended December 31.

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In the corresponding quarter last year, the company posted a net profit of Rs 5,585.9 crore. CNBC-TV18 Polls had predicted a profit of Rs 7,033.2 crore for the quarter under review.

Total income rose to Rs 36,039 crore during the December quarter against Rs 30,811.27 crore in the year-ago period, HDFC Bank said in a statement.

"Net interest income (interest earned less interest expended) for the quarter ended December 31, 2019, grew to Rs 14,172.9 crore from Rs 12,576.8 crore for the quarter ended December 31, 2018, driven by growth in advances of 19.9 per cent, and a growth in deposits of 25.2 per cent," it said.

The net interest margin for the quarter remained stable at 4.2 percent, it added.

During the quarter, gross non-performing assets (NPAs) rose to 1.42 percent of the total advances, compared with 1.38 per cent at the end of the third quarter of 2018-19.

Net NPAs of the bank too increased to 0.48 per cent of the assets in October-December 2019, against 0.42 percent a year ago.

As a result, the bank's provisions (other than tax) and contingencies increased to Rs 3,043.56 crore against Rs 2,211,53 crore reported in the corresponding period of the previous financial year. Of this, provision of NPA was Rs 2,883.6 crore alone, it said.

The specific loan loss provisions in the current quarter include one-offs of approximately Rs 700 crore, primarily relating to certain corporate accounts. Therefore, the Core Credit Cost ratio (i.e. excluding one-offs), was 0.92 per cent, as compared to 0.90 per cent in the quarter ending September 30, 2019, and 0.88 per cent in the quarter ending December 31, 2018," it said.

Other incomes of the bank increased to Rs 6,669.3 crore against Rs 4,921.01 crore in the same quarter last fiscal.

Total balance sheet size as of December 31, 2019 was Rs 13,95,336 crore against Rs 11,68,556 crore as of December 31, 2018.

Total deposits rose by 25.2 percent to Rs 10,67,433 crore, while total advances grew by 19.9 per cent Rs 936,030 crore.

On Friday, shares of HDFC Bank ended at Rs 1,277.85, down Rs 9.75, or 0.76 percent on the BSE.

First Published:Jan 18, 2020 3:33 PM IST