Comments
Private sector lender HDFC Bank’s standalone net profit increased 17.6 per cent in the second quarter of the current fiscal supported by a robust growth in net interest income.
For the quarter ended September 30, the bank reported net profit of ₹8,834.3 crore against ₹7,513.11 crore in the corresponding quarter last fiscal.
Net interest income grew 12.1 per cent to ₹17,684.4 crore (₹15,776.4 crore). Core net interest margin was at 4.1 per cent.
Other income was up 21.5 per cent at ₹7,400.8 crore (₹6,092.5 crore).
Provisions and contingencies increased 6 per cent to ₹3,924.7 crore (₹3,703.5 crore).
“Total provisions for the current quarter included contingent provisions of approximately ₹1,200 crore,” HDFC Bank said in a statement on Saturday.
Asset quality remained stable and improved on a sequential basis.
Gross non performing assets (GNPAs) rose to ₹16,346.07 crore as on September 30 (against ₹11,304.60 crore).
GNPAs declined 12 basis points during the quarter to 1.35 per cent of gross advances against 1.47 per cent as on June 30, 2021. However, GNPAs in the reporting quarter were 27 basis points higher vis-a-vis the year-ago level of 1.08 per cent. Net NPAs declined to 0.4 per cent of net advances as on September 30, 2021 compared to 0.48 per cent as on June 30, 2021. However, net NPAs rose by 23 basis points vis-a-vis the year-ago level of 0.17 per cent.
Restructured book
The number of requests the bank received for restructuring personal and business loans stood at 6.45 lakh and 6.12 lakh, respectively, under the RBI’s Resolution Framework 2.0 of May 2021. Of this, resolution plans were implemented in the case of 5.5 lakh personal loan accounts and 5.3 lakh business loan accounts. It also received requests for resolution from 9,870 small businesses, of which 6,934 accounts were taken up for resolution.
The total exposure to these accounts before the implementation of the resolution plan was ₹17,397.11 crore.
Meanwhile, of the 3.36 lakh accounts restructured under the Resolution Framework 1.0 with an exposure of ₹7,829.48 crore, ₹1,687.02 crore slipped into NPA in the first half of the fiscal and ₹856.66 crore was written off.
Advances and deposits
Total deposits increased 14.4 per cent on a year on year basis to ₹14.06 lakh crore. Advances increased 15.5 per cent to ₹11.98 lakh crore during the period.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.