Despite an 89 per cent jump in provisions and contingencies, HDFC Bank reported 20 per cent year-on-year (y-o-y) increase in third quarter net profit.

In the quarter ended December 31, the private sector bank logged a net profit of ₹4,643 crore against ₹3,865 crore in the year-ago period.

Net interest income (interest earned less interest expended) was up 24 per cent y-o-y at ₹10,314 crore.

In a statement, the bank said the net interest income was driven by average asset growth of 16.6 per cent (18.6 per cent in the year-ago quarter) and a core net interest margin of 4.3 per cent (4.1 per cent).

Other income (including commission, fees, earnings from foreign exchange and derivative transactions, profit and loss from investments and recoveries from accounts previously written-off) grew 23 per cent to ₹3,869 crore.

As of December-end 2017, total deposits increased 10 per cent y-o-y to ₹6,99,026 crore. The proportion of current account, savings account (CASA) deposits in total deposits came down to 43.9 per cent (45 per cent).

Total advances increased 27.5 per cent y-o-y to ₹6,31,215 crore, with retail and wholesale loans growing 28.7 per cent and 26.4 per cent, respectively.

Provisions and contingencies shot up 89 per cent to ₹1,351 crore against ₹716 crore in the year-ago quarter.

As on December-end 2017, gross non-performing assets (NPAs) edged up to 1.29 per cent of gross advances against 1.05 per cent as on December-end 2016.

During the reporting quarter, the bank’s gross NPAs increased by ₹532 crore to ₹8,235 crore.

HDFC Bank shares closed at ₹1,951.20 apiece, up 1 per cent over the previous close on the BSE.

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