The bank saw a 37.4 % increase in total income of Rs. 7,929.4 Cr as compared to Rs. 5,770.7 Cr for the corresponding period in FY11, while revenue increase to Rs. 4,156.2 Cr from Rs. 3,487 Cr. Net Interest Income (NII), predominantly driven by asset growth, posted an increase of 16.6 % at Rs. 2,944.5 Cr, slightly lesser than the expected figure of Rs. 2,995 Cr.

CASA, that marks the quantity of deposits a bank has in the form of current and saving account deposits, slipped to 47.3 percent as compared to 49 % for July-September quarter last year. This was mainly because of higher interest rates, which led to a decrease in current account deposits.

HDFCs loan book too showed positive results with overall retail loan growth at 30 % and HDFC personal loan showing an increase of 33 % on YoY basis. Also, only 2 % of the loan book was exposed to the power sector.

High revenues from Forex (43.1 %) and fee income (15.3 %) drove non-interest income up by 26.1 % at Rs. 1,211.7 Cr. Asset quality showed a slight improvement with 1.0 % of gross non-performing assets (NPAs) on gross advances as against the 1.16 % last year and a net NPAs of 0.3 % of net advances as against the 0.2 % last year.

Deposits and advances too grew on Quarter on Quarter (QoQ) basis to 18.1 % and 25.6 % respectively, while provisions fell down by 19.5 % on YoY basis to Rs. 366 Cr. Paresh Sukthankar, Executive director, HDFC Bank says, “Bank deposit and lending rates will remain where they are till the beginning of the next quarter.”

Operating expenses increased by 20.9 % to Rs. 2,030.4 Cr mainly due to higher investment in expansion of bank branches, with 2,150 branches in 1,141 cities  and 6,520 ATMS.

HDFC’s share price rose 2.6 % on the back of quarterly results that were largely in-line with street expectations.