Riding on a steady growth in net interest income and other income, HDFC Bank, India’s leading bank in terms of market capitalisation, has reported a 21 per cent increase in net profit to Rs 5,568.2 crore for the quarter ended June 2019 as against Rs 4,601.4 crore in the same period of last year.
The bank’s total income for the quarter at Rs 32,361.8 crore grew by 22.7 per cent from Rs 26,367.0 crore a year ago.
Net interest income (interest earned less interest expended) for the quarter ended June 2019 rose by 22.9 per cent to Rs 13,294.3 crore from Rs 10,813.6 crore last year, driven by asset growth and a core net interest margin for the quarter of 4.3 per cent, the private-sector lender said. Gross non-performing assets (NPAs) were at Rs 11,768 crore — 1.40 per cent of gross advances — as of June 2019 (1.17 per cent excluding NPAs in the agricultural segment) as against 1.33 per cent a year ago.
Lender has not shown reduction in bad loans
Unlike PSU banking sector which is reeling under heavy losses, HDFC Bank has managed to maintain its 20 percent plus growth in bottom line as its net interest income and other income showed a good growth. However, the bank has not showed any reduction in bad loans as gross NPAs to advances ratio has gone up marginally.
The bank held floating provisions of Rs 1,451 crore as on June 30, 2019.
Total provisions (comprising specific provisions, general provisions and floating provisions) were 115 per cent of the gross NPAs as of June 2019, the banks said.
“Other income (non-interest revenue) at Rs 4,970.3 crore was 27.2 per cent of the net revenues for the quarter and grew by 30.2 per cent over Rs 3,818.1 crore in the corresponding quarter last year,” it said.
The four components of other income for the quarter ended June 30, 2019 were fees & commissions of Rs 3,551.6 crore (Rs 3,171.0 crore in the previous year), foreign exchange and derivatives revenue of Rs 576.7 crore (Rs 499.6 crore), gain on revaluation/ sale of investments of Rs 212.0 crore (loss of Rs 283.2 crore) and miscellaneous income, including recoveries and dividend, of Rs 630.0 crore (Rs 430.7 crore).
It said provisions and contingencies for the quarter ended June 2019 were Rs 2,613.7 crore as against Rs 1,629.4 crore a year ago.