HDFC Bank’s net profit for the first quarter of this fiscal (FY17) rose 20.2 per cent year-on-year to ₹3,238.9 crore (₹2,695.7 crore in Q1 FY16) on the back of a 20.2 per cent growth in assets (loan book) and net interest margin (NIM) of 4.4 per cent.

Net interest income (interest earned minus interest expended) in Q1 grew 21.8 per cent y-o-y to ₹7,781.4 crore (₹6,388.8 crore), the bank said in an exchange filing.

The bank’s expenses grew 19.2 per cent to ₹4,768.9 crore (₹4,000.8 crore) improving the cost-to-income ratio by 20 basis points to 45 per cent. The bank set aside ₹866.7 crore towards provisioning during the quarter (₹728 crore in Q1 FY16).

The bank’s balance sheet (total assets) increased from over ₹6.29-lakh crore in Q1 FY16 to over ₹7.55-lakh crore in Q1 FY17.

Deposits grew 18.5 per cent y-o-y to over ₹5.73-lakh crore with current account and savings account (CASA) constituting a healthy 39.9 per cent of the bank’s deposit base. Advances grew 23.2 per cent to over ₹4.7-lakh crore with the proportion of retail to wholesale advances at 53:47.

Bad loans (gross non-performing assets as a percentage of gross advances) increased nine basis points to 1.04 per cent while net NPA stood at 0.3 per cent of net advances, and total restructured loans at 0.1 per cent of gross advances.

On the increase in GNPA, Paresh Sukthankar, Deputy MD, HDFC Bank, said: “We are still very comfortable,” adding that the increase was not due to any serious chunky corporate account.

Capital adequacy ratio according to Basel III norms stood at 15.5 per cent, down 20 basis points y-o-y. The bank had a network of 4,541 branches and 12,013 ATMs at the end of Q1.

The HDFC Bank scrip closed at ₹1,228.45 on the BSE, down 0.45 per cent.

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