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HDFC Bank Reports Net Profit of Rs 6,658.62 crore

HDFC Bank on Saturday reported a net profit of Rs 6,658.62 crore for the quarter ended June 30. That marked an increase of 19.58 per cent compared to the corresponding period a year ago, driven by higher interest income and lower costs. In a regulatory filing to stock exchanges, HDFC Bank – the country’s largest private sector lender by market value – said its net revenue (net interest income plus other income) stood at Rs 34,453.28 crore in the April-June period, up 6.46 per cent compared to quarter ended June 30, 2019.

HDFC Bank said its net interest income (NII) – or the difference between interest earned and interest paid – increased 17.84 per cent to Rs 15,665.42 crore in the June quarter.

Its net interest margin – a key indicator of a bank’s profitability – stood at 4.3 per cent in the April-June period, unchanged from the previous quarter.

The lender’s asset quality worsened on a sequential basis. HDFC Bank’s gross non-performing assets – or bad loans – as a percentage of total loans came in at 1.36 per cent in the first quarter of 2020-21, as against 1.26 per cent in the quarter ended March 31, 2020, and 1.40 per cent in the quarter ended June 30, 2019.

HDFC Bank reported a 48.89 per cent increase in total provisions and contingencies – money set aside by the bank to account for potential defaults – to Rs 3,891.52 crore in the first quarter of current financial year.

HDFC Bank said it continues to hold provisions against the potential impact of COVID-19 in excess of Reserve Bank of India-prescribed norms “based on the information available at this point in time”.

The lender warned of higher defaults and a potential rise in provisions.

“The continued slowdown may lead to a rise in the number of customer defaults and consequently an increase in provisions there against,” it said.

On Friday, HDFC Bank shares had ended 3.46 per cent higher at Rs 1,099.15 apiece on the BSE, outperforming the benchmark Sensex index which climbed up 1.50 per cent.

SOURCE: https://www.ndtv.com/

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