A private security guard moves past a signboard of a HDFC Bank automated teller machine (ATM) in New Delhi, India, October 20, 2016. REUTERS/Adnan Abidi
MUMBAI: HDFC Bank Ltd, India’s largest private sector lender, has posted a forecast-beating quarterly profit, driven by higher interest income.
Net income grew about 7% from a year earlier to 176.2 billion rupees or about US$2.1bil in the three months ended March, according to a statement last Saturday.
That beat the average estimate of 170.2 billion rupees, based on a Bloomberg survey of analysts.
The lender is a bellwether for the sector, which has been facing constraints to raise deposits over the last year.
India’s central bank lowered its forecast for the economy earlier this month, warning of a “growth dampener” in the face of damaging US tariffs.
Meanwhile, interest rate cuts are also set to weigh on margins of banks.
The bank’s net interest income rose 10% from a year earlier to 320.7 billion rupees.
It will pay a dividend of 22 rupees a share.
Loans grew 5.4% to 26.44 trillion rupees at the end of March, while deposits grew 14.1% to 27.2 trillion rupees. — Bloomberg
