HDFC Bank Financial Results for the Q1 Ended June 30, 2017
The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarter ended June 30, 2017, at their meeting held in Mumbai on Monday, July 24, 2017. The accounts have been subjected to a ‘Limited Review’ by the statutory auditors of the Bank.
The Bank’s total income for the quarter ended June 30, 2017 was `22,185.4 crore, up from `19,322.6crore for the quarter ended June 30, 2016. Net revenues (net interest income plus other income) increased by 21.7% to `12,887.4crore for the quarter ended June 30, 2017from`10,588.1croreinthe corresponding quarter of the previous year.
Net interest income (interest earned less interest expended) for the quarter ended June 30, 2017grew by 20.4% to `9,370.7crore, from `7,781.4crore for the quarter ended June 30, 2016, driven by average loan growth of 20.7%and a core net interest margin for the quarter of 4.4%.
Other income (non-interest revenue) at `3,516.7crore was 27.3% of the net revenues for the quarter ended June 30, 2017and grew by 25.3% over `2,806.6crore in the corresponding quarter ended June 30, 2016. The four components of other income for the quarter ended June 30, 2017were fees & commissions of`2,578.1crore (`1,977.9crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of `296.8crore (`314.5crore for the corresponding quarter of the previous year), gain on revaluation / sale of investments of `331.4crore (`276.9crore in the corresponding quarter of the previous year) and miscellaneous income,including recoveries and dividend, of`310.3crore (`237.4crore for the corresponding quarter of the previous year).
Operating expenses for the quarter ended June 30, 2017 were `5,367.5crore, an increase of 12.6% over `4,768.9crore during the corresponding quarter of the previous year. The core cost-to-income ratio for the quarter was at 42.7% as against 46.2% for the corresponding quarter ended June 30, 2016.
Provisions and contingencies for the quarter ended June 30, 2017were`1,558.8crore (consisting of specific loan loss provisions `1,343.2crore, general provisions `206.3crore andother provisions `9.3crore) as against `866.7crore (consisting of specific loan loss provisions `832.3crore, general provisions of`1.1crore andother provisions `33.3crore) for the corresponding quarter ended June 30, 2016.General provisions include additional provisions of` 121.1 crore for standard advances to stressed sectors.Profit before tax was up 20.4% to `5,961.2 crore.After providing `2,067.3crore for taxation, the Bank earned a net profit of `3,893.8crore, an increase of 20.2% over the quarter ended June 30, 2016.
KV Correspondent
