HDFC Bank Q2 net up 31.5%, beats street estimates

MUMBAI (Reuters) - India's No. 3 lender, HDFC Bank, posted a 31.5 percent rise in quarterly profit, beating street estimates, on higher fee and net interest income and stable asset quality.

The bank, which consistently beat market expectations over the past several quarters, said net profit in the fiscal second quarter ended September rose to 11.99 billion Indian rupees ($243 million) from 9.12 billion a year ago.

A Reuters poll had projected net profit of 11.6 billion rupees for the bank, which is also listed in New York.

The Reserve Bank of India has raised interest rates 12 times since March 2010 to fight high inflation and signalled more was to come.

Shares of HDFC Bank, which the market values at nearly $23 billion, fell about 7 percent in the September quarter, less than half the 15 percent drop in the BSE Bank index. The benchmark 30-share benchmark BSE index had shed nearly 13 percent.

($1 = 49.3 Rupees)

(Reporting by Swati Pandey)