HDFC reports robust profit growth in 2019 Q1
View(s):HDFC Bank has reported robust profit growth in the first quarter of 2019 with post-tax profit increasing to Rs.128.6 million, up by 48 per cent over the corresponding period of 2018.
The bank posted a profit before VAT, NBT and Debt Repayment Levy (DRL) of Rs.284.18 million, up by 42 per cent. “It is important to note that the bank has been able to report this performance after paying Rs.40.55 million for DRL which was applicable only with effect from October 2018,” it said in a media release.
Commenting on the quarter’s performance, HDFC’s CEO /General Manager Palitha Gamage said that core banking activities contributed to the strong results recorded for the period backed by a conducive business environment and the improvement effected to the internal operations.
The bank has been able to maintain a substantial development in profitability driven by the healthy improvement of the Net Interest Income (NII) ratio from 31 per cent to 36 per cent. The interest income that account for 95 per cent of the gross revenue of the bank has increased from Rs.1,696.57 million to Rs.1,895.7 million.
The bank has also been successful in containing growth in interest expenses to 3 per cent over the corresponding quarter of 2018, despite a shift in its deposit mix towards high cost deposits.