The second largest private sector lender HDFC Bank has reported its predictable 30 plus percent increase in its June quarter net at Rs 1,844 crore, driven by healthy growth in retail lending.The bank's net interest income was up 21 per cent at Rs 4,418.7 crore as against Rs 3,652.4 crore a year ago, driven largely by a credit growth of 21.2 per cent, which included a 25 per cent jump in retail lending.The proportion of retail loan book in the overall asset book grew to 54 percent, while corporates accounted for the remaining.

 

"We believe that private consumption is still strong despite the overall difficulties on the economic front. Unless the investment cycle returns, we will see growth in retail lending outpacing the wholesale book," executive director Paresh Sukhtankar told reporters.The bank was able to retain its net interest margin at 4.6 per cent, even though the ratio of the low-cost current and savings account (Casa) deposits fell below the 45 per cent level. He said the bank is targeting to hold the NIM in the 4.1-4.6 per cent band.

 

It was able to hold on to asset quality, with the gross non-performing assets ratio remaining flat at 1 per cent. Its fresh slippages were Rs 380 crore during the quarter, while the proportion of restructured advances improved to 0.2 percent as against 0.3 percent a year ago.The bank's overall fees and commissions pie rose marginally to Rs 1,284.5 crore as against Rs 1,150.4 crore a year ago, even though larger non-interest revenue was up 30.4per cent at Rs 1,925.6 crore.The bank's capital adequacy ratio stood at 16 per cent, with the core tier-I at 10.6 per cent.