Mortgage Profits

Oct 11, 2103 (LBO) - Profits at Sri Lanka's HDFC Bank rose to 108.4 million rupees in the September 2013 quarter from 9,000 rupees, a year earlier with higher interest and fee income, interim results showed. The bank reported earnings of 1.

68 rupees per share for the quarter. In the nine months to September, the bank reported earnings of 2.

46 rupees per share on profits of 158.9 million rupees, up from 10.2 million rupees a year earlier.

The stock traded at 34.50 up 1.50 rupees on Friday.

Interest income rose 45 percent to 902 million rupees in the September quarter from a year earlier and interest expense rose at a slower 39 percent to 627 million rupees.

Fee and commission income surged to 171 million rupees from 11.

9 million rupees.

HDFC Bank's performance is can be volatile due to housing loans given against member balances of Sri Lanka's Employees Provident Fund, a retirement fund, being defaulted.

The fund remits the defaulted payments boosting profits.

HDFC had a gross non-performing loan ratio of 18.18 percent by end September 2013. Without EPF backed loans, NPLs were 4.39 percent.

The bank had loans of 18.3 billion rupees and total assets of 24.

3 billion rupees.