HDFC’s quarterly profit rises by 20%

Bloomberg

HDFC Bank Ltd.’s quarterly profit rises 20%, almost in line with analyst estimates as higher interest income boosted India’s biggest lender by market valuation, setting the tone for the
nation’s bank earnings.
Net income for the quarter ended September stood at 106.1 billion rupees ($1.3 billion), compared to 88.3 billion rupees a year ago, according to an exchange filing. A Bloomberg survey of analysts estimated an average profit of 105.5 billion rupees. Its interest income surged 23% in the latest quarter compared to the year ago period.
India’s banks are balancing a boom in income from loans, fed by higher interest rates, with signs of a slowing economy. Analysts largely expect a strong performance across banks in the September quarter, buoyed by credit growth and a lighter impact from losses on bond portfolios. HDFC Bank is the first major lender in the country to declare its earnings.
Businesses are expecting blockbuster retail sales in the run-up to ‘Diwali,’ the festival of lights and the nation’s peak shopping season, which is expected to further boost demand for credit.
HDFC’s gross bad loans were 1.23%, coming in lower from 1.28% three months ago. It set aside 32.4 billion rupees as provisions in the quarter, compared with 31.9 billion rupees in
the three months prior and 39.2 billion rupees a year ago.