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Tuesday, November 30, 2021

HDFC Bank Sept qtr profit up 17.6 per cent; gross NPAs rise on-year

Gross non-performing assets (NPAs) of the private sector lender were Rs 16,346 crore — 1.35 per cent of advances in the second quarter of FY22 — as against Rs 11,304 crore (1.08 per cent) in September 2020.

By: ENS Economic Bureau | Mumbai |
October 17, 2021 3:50:30 am
The bank’s net revenues (net interest income plus other income) increased by 14.7 per cent to Rs 25,085.2 crore for the September quarter, compared with Rs 21,868.8 crore for the quarter ended September 2020.

HDFC Bank on Saturday posted a standalone net profit of Rs 8,834.3 crore for the September quarter of the ongoing fiscal, an increase of 17.6 per cent from Rs 7,513.11 crore in the same period a year ago.

Gross non-performing assets (NPAs) of the private sector lender were Rs 16,346 crore — 1.35 per cent of advances in the second quarter of FY22 — as against Rs 11,304 crore (1.08 per cent) in September 2020.

The bank’s net revenues (net interest income plus other income) increased by 14.7 per cent to Rs 25,085.2 crore for the September quarter, compared with Rs 21,868.8 crore for the quarter ended September 2020.

Net interest income (interest earned less interest expended) for the quarter under review grew by 12.1 per cent to Rs 17,684.4 crore from Rs 15,776.4 crore in the year-ago period.

Advances saw a growth of 15.5 per cent, reaching new heights driven through relationship management, digital offering and breadth of products. Core net interest margin was at 4.1 per cent.

“New liability relationships added during the quarter were at an all-time high. This continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 123 per cent, well above the regulatory requirement, which positions the bank favourably to capitalize on the opportunities that would arise as the economy gains momentum during the festive months,” HDFC Bank said.

Explained

Eye on gains in festivals

With advances reaching new heights at Rs 11,98,837 crore, as well as deposits being a focus area, HDFC Bank managed to keep a healthy liquidity cover ratio of 123 per cent in the recently concluded quarter. These factors, coupled with adequate provisions for contingencies, position the private lender to carry forward its momentum during the festive months.

Provisions and contingencies for the quarter under review were Rs 3,924.7 crore (consisting of specific loan loss provisions of Rs 2,286.4 crore, and general and other provisions of Rs 1,638.3 crore) as against Rs 3,703.5 for the quarter ended September 2020.

Total provisions for the current quarter included contingent provisions of Rs 1,200 crore.

The bank said it held floating provisions of Rs 1,451 crore and contingent provisions of Rs 7,756 crore as on September 2021.

Total provisions (comprising specific, floating, contingent and general provisions) were 163 per cent of the gross non-performing loans as on September 2021.

Total advances as of September 2021 were Rs 11,98,837 crore, an increase of 15.5 per cent a year ago. Retail loans grew by 12.9 per cent, commercial and rural banking loans grew by 27.6 per cent and other wholesale loans grew by 6.0 per cent. Overseas advances constituted 3.5 per cent of total advances.

On Thursday, shares of HDFC Bank closed 2.86 per cent higher at Rs 1,685.90 on the BSE.

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