HDFC Bank Q1 net profit up 21%

The country’s largest private sector lender HDFC Bank reported a robust 21 per cent increase in its net profit for the first quarter of the fiscal.

The lender’s net profit rose to Rs 5,568.16 crore for the quarter ended June 30, 2019 as against Rs 4,601.44 crore a year ago.

The Bank’s total income for the quarter ended June 30, 2019 grew 22.7 per cent to Rs 32,361.8 crore from Rs 26,367 crore a year ago. Net interest income (interest earned less interest expended) for the first quarter increased by 22.9 per cent to Rs 13,294.3 crore, from Rs 10,813.6 crore a year ago. Core net interest margin for the quarter was 4.3 per cent.

HDFC Bank’s asset quality was stable but provisions rose to Rs 2,613.7 crore for the quarter under review from Rs 1,629.4 crore for the quarter ended June 30, 2018.

Gross non-performing assets were at 1.4 per cent of gross advances as on June 30, 2019 (1.17 per cent excluding NPAs in the agricultural segment) as against 1.33 per cent as on June 30, 2018 (1.09 per cent excluding NPAs in the agricultural segment). Net non-performing assets were at 0.4 per cent of net advances as on June 30, 2019.

“The Board of Directors has declared a special interim dividend of ₹ 5 per equity share of ₹ 2 to commemorate 25 years of the Bank’s operations,” the bank said in a statement. This was one of the key requests of shareholders at the bank’s annual general meeting earlier this month.