India's HDFC Bank posts $1.2b in Q3 profit

Gross bad loan ratio shrank to 0.8% at end-December.

HDFC Bank, India’s largest lender by assets, recorded $1.2b in Q3 profit driven by strong loan growth and lower bad loans, reports Bloomberg.

It beat analysts' average estimate of $1.04b (INR76.4b), Bloomberg said.

The gross bad loan ratio shrank to 0.8% at the end of December from 1.08% three months earlier. The ratio would have been 1.38% without the relaxation of rules regarding the recognition for bad debt, the bank said.

Its loan book grew by an annual 16% from October to December, outpacing sector average growth of 6%.

Last year, the bank was ordered to curb some digital and credit card operations following a series of technical glitches, a rare step by the financial regulator as online transactions surge in the nation.

Here’s more from Bloomberg.