MUMBAI (Reuters) - HDFC Bank, India's largest private lender, on Saturday reported a 18.5% jump in net profit for the October-December quarter, aided by higher top-line and healthy loan growth.
Net profit for the quarter was 122.59 billion rupees ($1.51 billion), up from 103.42 billion rupees in the same quarter a year earlier. That was above analysts' forecast of 118.33 billion rupees, according to Refinitiv IBES data.
Net interest income, the difference between interest earned and paid, rose 24.6% to 229.88 billion rupees from 184.44 billion rupees. The core net interest margin stood at 4.1% for the quarter.
HDFC's advances for its third fiscal quarter rose 19.5%, retail loans grew 21.4%, commercial and rural banking loans were up 30.2% and other wholesale loans rose 20.3%.
Deposits grew 19.9%, aided by higher time deposits and current and savings account deposits.
Credit offtake in India has picked up in recent months due to sustained demand for loans, causing a scramble for deposits among lenders. Loans at Indian banks rose 17.4% in the two weeks to Dec. 16 from a year earlier, while deposits rose 9.36%, the latest data from the Reserve Bank of India showed last month.
HDFC Bank's asset quality was stable from the previous three months, with its gross non-performing assets (NPA) ratio unchanged at 1.23% and net NPA ratio unchanged at 0.33%.
Provisions and contingencies fell slightly to 28.06 billion rupees from 29.94 billion rupees last year.
The bank's credit cost ratio declined to 0.74% from 0.87% in the prior quarter and 0.94% a year earlier.
($1 = 81.2800 Indian rupees)