India's HDFC Bank posts slowest quarterly profit growth in a decade

MUMBAI Tue Oct 15, 2013 5:01am EDT

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MUMBAI Oct 15 (Reuters) - India's No.3 lender by assets HDFC Bank posted quarterly profit growth of 27 percent, in line with analyst estimates, due to losses in its investment portfolio, higher operating expenses and worsening asset quality.

That was the first time in a decade that HDFC Bank's net profit has fallen below 30 percent.

Net profit rose to 19.8 billion rupees ($322.08 million) in the quarter ended Sept. 30 from about 15.6 billion rupees a year earlier, the bank said on Tuesday. Net interest income grew nearly 15 percent to 44.8 billion rupees.

According to Thomson Reuters I/B/E/S, analysts had expected HDFC Bank to post net profit of 19.8 billion rupees.

Asset quality at the third-biggest Indian lender behind State Bank of India and ICICI Bank worsened, with nonperforming loans as a percentage of total assets at 1.1 percent compared with 0.9 percent a year earlier. ($1 = 61.4750 Indian rupees) (Reporting by Swati Pandey; Editing by Ryan Woo)

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