HDFC Bank on Saturday reported a standalone net profit of ₹8,834 crore, up 18%, for the quarter ended 30 September, 2021, buoyed by strong loan growth, as the coronavirus pandemic’s economic fallout waned.
The lender had posted a net profit of ₹7,513 crore in the year-ago period.
HDFC Bank’s net revenues (net interest income plus other income) increased by 14.7% to ₹25,085.2 crore for the September quarter from ₹21,868.8 crore in the corresponding quarter last year.
Net Internet Income (NII) (interest earned less interest expended) by 12.1% to ₹17,684.4 crore in Q2FY22 from ₹15,776.4 crore in the year-ago period.
“Advances grew at 15.5% reaching new heights driven through relationship management, digital offering and breadth of products. Core net interest margin was at 4.1%,” said HDFC Bank in a regulatory filing.
Other income (non-interest revenue) at ₹7,400.8 crore was 29.5% of net revenues for the quarter ended September 30, 2021 and grew by 21.5% over ₹6,092.5 crore in the corresponding quarter of the previous year.
Core operating profits came at Rs15131.8 crore, up 18.24% YoY and 4.1% Q-o-Q. Provisions came at ₹3924.7 crore, down 18.8% Q-o-Q (aids PAT, as per poll expectations).
The bank’s loans grew 15.5% from a year ago, about three times the banking sector’s rate. It set aside ₹3,920 crore toward provisioning in the September quarter, down from ₹4,830 crore three months before.
The Mumbai-based asset quality improved sequentially. Gross non-performing assets (GNPA) were at 1.35% of gross advances as on September 30, 2021 as against 1.47% as on June 30, 2021 and 1.37% as on September 30, 2020. Net non-performing assets (NNPA) were at 0.40% of net advances as on September 30, 2021.
The Bank held floating provisions of Rs1,451 crore and contingent provisions of 17,756 crore as on September 30, 2021. Total provisions (comprising specific, floating, contingent and general provisions) were 163% of the gross non-performing loans as on September 30, 2021.
The lender’’s retail push also coincides with a recent removal of a ban by the Reserve Bank of India on issuing new credit cards. However, the central bank has retained its curb on launching new online products by the bank after repeated technology glitches.
Shares of HDFC Bank on Thursday closed 2.86% higher at ₹1,685.90 apiece on BSE.
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