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HDFC Bank Q1 net rises 30% at Rs 1,844 crore

Net interest margin, a key measure of profitability, stood at 4.6 per cent, unchanged from the year-ago period.

HDFC Bank posted on Wednesday a 30 per cent rise in first-quarter net profit, in line with expectations, boosted by higher fee income and credit growth.

The Mumbai-based lender, India's third largest in terms of assets, has posted profit growth of more than 30 per cent every quarter for the last decade.

Net profit rose to Rs 1844 crore in the quarter ended June from about Rs 1,417 crore a year earlier. Net interest income grew nearly 21 per cent to Rs 4,418 crore.

According to Thomson Reuters I/B/E/S, analysts had expected a net profit of Rs 1,846 crore for the bank. HDFC competes with bigger local rivals like State Bank of India and ICICI Bank.

Asset quality, valued by the market at about $27 billion, worsened slightly, with net nonperforming loans as a percentage of total assets at 0.3 per cent compared with 0.2 per cent a year ago.

HDFC Bank's conservative lending strategies have helped it maintain consistently strong growth and outperform local peers struggling with an increase in bad loans.

Copyright: Thomson Reuters 2013

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