HDFC Bank Q1 Net Profit Jumps 14.36% To Rs 7,922 Crore
- ByStartupStory | July 17, 2021
The country’s largest private sector lender HDFC Bank reported a 14.36% growth in its consolidated net profit at Rs7,922.09. But overall, there’s a decline in the consolidated profit when compared with the preceding March quarter’s Rs 8,434 crore. Its core net interest income grew 8.57 per cent to Rs 17,009 crore on advances growth of 14.4 percent and the net interest margin coming at 4.1 percent, while the other income grew 54.3 per cent to Rs 4,075 crore.
“These disruptions led to a decrease in retail loan originations, sale of third-party products, card spends and efficiency in collection efforts. The lower business volumes, coupled with higher slippages, resulted in lower revenues, as well as an enhanced level of provisioning,” the bank said in a statement. The specific loan loss provisions jumped 54 per cent to Rs 4,219 crore, while the overall provisions, including Rs 600 crore set aside as contingency provisions, stood at Rs 4,830.8 crore as against Rs 3,891.5 crore. The total credit cost ratio came at 1.67 per cent, as compared to 1.64 per cent for the quarter ending March and 1.54 per cent for the quarter ending June 30, 2020.
HDFC Bank also said that the disruptions may lead to a continued rise in the “number of customer defaults and consequently an increase in provisions thereagainst”. The bank, which is the first to report numbers for the quarter, said the gross non-performing assets ratio increased to 1.47 per cent as of June 30, up from the 1.32 per cent in March and 1.36 per cent in the year-ago period.
Its deposit growth was 13.2 per cent during the quarter and the share of the low-cost current and savings accounts balances in the overall base stood at 45.5 per cent. Its total Capital Adequacy Ratio (CAR) was at 19.1 percent as on June 30 with the core Tier-1 CAR at 17.9 per cent. The total number of employees increased to 1,23,473 at the end of the June quarter, as against 1,15,822 in the year-ago period. It had a network of 5,653 branches and 16,291 ATMs as of June. Among the subsidiaries, HDB Financial Services reported a decline in June quarter net profit at Rs 130.6 crore as against Rs 232.7 crore on the back of a spike in dud assets to 7.75 percent.
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