HDFC Bank, India's
third biggest lender by assets, posted yet another quarter of slowing quarterly profit on weaker loan growth and fee income.
HDFC Bank has been a sector outperformer posting consistent profit growth and stable asset quality in recent years and is among the 'top picks' for most brokerages. Until the quarter-ended September, it had reported quarterly profit growth exceeding 30 per cent for the last decade.
On Friday, the bank posted a 25 per cent increase in net profit to Rs 23.26 billion ($377.84 million) from Rs 18.59 billion a year ago. Net interest income, the difference of interest earned and paid out, gained nearly 16 per cent to Rs 46.35 billion.
On average, analysts had expected the bank to post a net profit of Rs 23 billion, according to Thomson Reuters I/B/E/S.
Asset quality at the bank remained mostly stable during the quarter. Non-performing loans as a percentage of total assets were at 0.3 percent, HDFC Bank said. Earlier this week, smaller rivals Yes Bank and Axis Bank posted more than 19 per cent increase in December quarter net profit.($1 = 61.5600 Indian rupees)
(Reuters)
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