Money & Banking

HDFC Bank Q1 net profit up 19.6 per cent

Our Bureau Mumbai | Updated on July 18, 2020 Published on July 18, 2020

Aditya Puri, MD and CEO, HDFC Bank Ltd   -  Dhiraj Singh

The net interest income for the first quarter this fiscal grew by 17.8 per cent to ₹ 15,665.4 crore

HDFC Bank reported a robust 19.6 per cent growth in its net profit for the first quarter of the fiscal.

For the quarter ended June 30, 2020, the bank earned a net profit of ₹ 6,658.6 crore compared to Rs 5,568.16 crore a year ago.

 

Its net revenues (net interest income plus other income) rose 8.08 per cent to ₹ 19,740.7 crore for the quarter ended June 30, 2020 from ₹ 18,264.5 for the quarter ended June 30, 2019.

The net interest income for the first quarter this fiscal grew by 17.8 per cent to ₹ 15,665.4 crore from ₹ 13,294.3 crore a year ago. This was driven by growth in advances of 20.9 per cent, and a growth in deposits of 24.6 per cent. The net interest margin for the quarter was at 4.3 per cent.

Other income declined by1 8 per cent to Rs 4,075.31 crore in the quarter under review.

“The continued slowdown in economic activity has led to a decrease in retail loan origination, sale of third party products, use of credit and debit cards by customers, efficiency in collection efforts and waivers of certain fees,” it said in a statement on Saturday, adding that as a result, fees and other income were lower by approximately ₹ 2,000 crore

Provisions and contingencies for the quarter ended June 30, 2020 were up nearly 49 per cent at ₹ 3,891.5 crore as against ₹ 2,613.7 crore a year ago. Total provisions for the current quarter included contingent provisions of about ₹ 1,000 crore.

“During the quarter, the bank has used its analytical models to determine slippages, resulting in a more expedited recognition of NPAs (non-performing assets), as well as accelerated corresponding specific provisions.,” HDFC Bank said, adding that it also continues to hold provisions as on June 30, 2020 against the potential impact of Covid-19 based on the information available at this point in time and the same are in excess of the RBI prescribed norms.

Its gross NPAs were at 1.36 per cent of gross advances as on June 30, 2020, as against 1.26 per cent as on March 31, 2020 and 1.4 per cent as on June 30. Net non-performing assets were at 0.33 per cent of net advances as on June 30, 2020.

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Published on July 18, 2020
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