HDFC Bank, India’s largest private lender, reported a standalone net profit of ₹19,510 crore for July to September, up 4.7% from a year earlier and a little below analysts’ estimates. Net interest income rose 9.7% to ₹34,620 crore. Gross advances grew 16.3% and average deposits 16.8%.
ICICI Bank’s profit rose 20.1% to ₹14,843 crore, helped by lower provisions. Its net interest income grew 17.7%.
Axis Bank’s profit rose 38% to ₹7,003 crore and Kotak Mahindra Bank’s 29% to ₹4,212 crore, according to Upstox’s summary of the results.
Margins under pressure
Net interest margins fell at all four banks compared with a year earlier. ICICI’s slipped to 4.18% from 4.30%, Axis’s to 3.36% from 3.73% and Kotak’s to 4.31% from 4.54%. Deposit costs have stayed high while loan rates have not risen as fast.
Fewer bad loans
Asset quality improved. HDFC Bank’s gross bad loans fell to 1.11% of advances from 1.24% a year ago, ICICI’s to 1.20% from 1.58% and Kotak’s to 1.04% from 1.39%.
