MUMBAI: HDFC Bank announced 20.2 percent increase in net profit to Rs 2,794.5 crore for the third quarter ended December 31, driven by a surge in core interest earnings.
The India’s second largest private lender had reported net profit of Rs 2,325.7 crore in the October-December period of last fiscal, 2013-14. The bank’s core net interest income grew 23 percent to Rs 5,699 crore in the third quarter ended December 2014, while other income was up 18 percent to Rs 2,534.9 crore. The other income included a 14 percent uptick on fees and commission, a 23 percent dip in forex and derivative revenue and a five- fold jump in treasury income.
Because of a fall in money market rates, HDFC Bank was able to save on the cost of funds, which helped the Q3 net interest margin to rise by 0.2 percent to 4.4 percent. On the Reserve Bank being unhappy over lenders not cutting interest rates, HDFC Bank Deputy Managing Director Paresh Sukthankar said at a press conference here that the bank will “re-calibrate” its base rate, or minimum rate of lending, by March.
