HDFC Bank on Saturday posted a net profit of ₹12,259.5 crore for Q3FY23 — an increase of 18.5 per cent from the year ago period led by strong growth in the net interest income and stable asset quality.

Advances were higher by 19.5 per cent at Rs 15.1 lakh crore at the end of December, led by a 21.4 per cent rise in domestic retail loans, 30.2 per cent rise in commercial and rural banking loans, and 20.3 per cent growth in corporate and other wholesale loans. Overseas advances constituted 2.8 per cent of total advances.

Net interest income for the quarter grew 24.6 per cent to ₹22,988 crore. Core net interest margin was at 4.1 per cent, the lender said in a release.

Other income — excluding net trading and mark to market income — was higher by 15.4 per cent on year. Fees and commissions earned during the quarter rose to ₹6,053 crore from ₹5,075 crore a year ago, but net trading and MTM income fell to ₹261 crore from ₹1,047 crore. Miscellaneous income, including recoveries and dividend, was also slightly lower at ₹1,112 crore against ₹1,113 crore in the previous year.

Provisions and contingencies for the quarter were ₹2,806 crore against ₹2,994 crore for the quarter ended December 31, 2021. Credit cost ratio for the bank improved to 0.74 per cent from 0.94 per cent.

Gross NPA ratio at the end of December was at 1.23 per cent, flat from the previous quarter and lower than 1.26 per cent a year ago. Net NPA ratio for the quarter was 0.33 per cent.

Deposits of the bank rose 19.9 per cent on year to ₹17.3-lakh crore as of December 31, of which CASA deposits accounted for 44 per cent.

Capital adequacy ratio of the bank stood at 19.4 per cent as of December 31, slightly lower than 19.5 per cent a year ago. Tier-I capital was at 17.2 per cent.