21 Jan 2019 13:55 IST

HDFC Bank sees nearly 2% hike post Q3 results

The private sector lender reported Q3 earnings with a net profit of ₹5,585.9 crore

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 reported 20.3 per cent growth in net profit to ₹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 ₹4,642.6 crore in the October-December quarter of 2017-18.

Shares of HDFC Bank opened at ₹2,149, then surged further to ₹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 ₹2,139.95, then touched an intra-day high of ₹2,166.50, up 1.70 per cent over its previous closing price.

During the reported quarter, total income of the lender rose to ₹30,811.27 crore from ₹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 ₹12,576.8 crore from ₹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.