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Private sector lender HDFC Bank reported an 18.2 per cent increase in its standalone net profit to Rs 8,186.51 crore for the quarter ended March 31, 2021 led by robust growth in its net interest income.
Its net profit was Rs 6,927.69 crore in the fourth quarter of 2019-20.
The bank’s net profit for 2020-21 rose by a similar 18.5 per cent to ₹ 31,116.5 crore from Rs 26,257.32 crore a year ago.
However, on a sequential basis, HDFC Bank’s net profit fell by 6.5 per cent from Rs 8,758.29 crore in the October to December 2020 quarter.
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...through private placement of perpetual bondsThe bank’s net revenue increased by 16.4 per cent to ₹ 24,714.1 crore for the quarter ended March 31, 2021 from ₹ 21,236.6 crore a year ago.
Net interest income grew by 12.6 per cent to Rs 17,120.2 crore for the fourth quarter of the fiscal from ₹ 15,204.1 crore in the corresponding period in 2019-20. This was driven by advances growth of 14 per cent, and a core net interest margin of 4.2 per cent.
Other income grew by 25.9 per cent to ₹ 7,593.9 crore in the fourth quarter of 2020-21 from ₹ 6,032.6 crore in the corresponding quarter ended March 31, 2020.
Provisions and contingencies
Provisions and contingencies for the quarter ended March 31, 2021 increased by 24 per cent to ₹ 4,693.7 crore in the fourth quarter of the fiscal as against ₹ 3,784.5 crore for the quarter ended March 31, 2020.
“The bank also continues to hold provisions as on March 31, 2021 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,” HDFC Bank said in a statement on Saturday.
It held floating provisions of ₹ 1,451 crore and contingent provisions of ₹ 5,861 crore as on March 31, 2021. Total provisions (comprising specific, floating, contingent and general provisions) were 153 per cent of the gross non-performing loans as on March 31, 2021.
NPA
Gross non-performing assets were at Rs 15,086 crore or 1.32 per cent of gross advances as on March 31, 2021, as against 1.38 per cent (proforma approach) as on December 31, 2020 and 1.26 per cent as on March 31, 2020. Net non-performing assets were at 0.4 per cent of net advances as on March 31, 2021 versus 0.36 per cent a year ago.
The bank’s total Capital Adequacy Ratio was at 18.8 per cent as on March 31, 2021.
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