HDFC Bank reports 18.4% jump in Q2 profit
Srinagar: The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarter and half year ended September 30, 2020, at their meeting held in Mumbai on.
The Bank’s net revenues grew to Rs 21,868.8 crore for the quarter ended September 30, 2020 from Rs19,103.8 for the quarter ended September 30, 2019. Net interest income for the quarter ended September 30, grew by 16.7% to Rs 15,776.4 crore from Rs 13,515.0 crore for the quarter ended September 30, 2019, driven by asset growth of 21.5%, and a core net interest margin for the quarter of 4.1%. The Bank’s continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 153%, well above the regulatory requirement.
Other income (non-interest revenue) at Rs 6,092.5 crore was 27.9% of the net revenues for the quarter ended September 30, 2020 as against Rs 5,588.7 crore in the corresponding quarter ended September 30, 2019. The four components of other income for the quarter ended September 30, 2020 were fees & commissions of Rs 3,940.3 crore Rs 4,054.5 crore in the corresponding quarter of the previous year, foreign exchange & derivatives revenue of Rs 560.4 crore gain on sale / revaluation of investments of Rs 1,016.2 crore (gain of Rs 480.7 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveries, of Rs 575.6 crore (Rs 502.0 crore for the corresponding quarter of the previous year).
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 16.7 per cent to Rs 15,776.40 crore from Rs 13,515 crore in the year-ago quarter.
Core net interest margin (NIM) came in at 4.1 per cent.
The bank made provisions and contingencies amounting to Rs 3,703.50 crore for the September quarter, which included specific loan loss provisions of Rs 1,240.60 crore and general and other provisions of Rs 2,462.90 crore.
The private lender had made provisions worth Rs 2,700 crore in the year-ago quarter. Provisions, however, were lower than June quarter’s Rs 3,891.52 crore.
Asset quality improved, with gross non-performing assets (NPAs) falling to 1.o8 per cent of gross advances from 1.36 per cent in June quarter and 1.38 per cent in the year-ago quarter.
That said, if the bank were to account for classified borrower accounts as NPAs after August 31 and also adopt an early recognition of NPA using analytical models, the gross NPA would have been 1.38 per cent for September quarter.
The bank, as a matter of prudence, has made contingent provisions in respect of such accounts.
Pre-provision profit for the bank rose 18.1 per cent to Rs 13,813 crore.
Total deposits rose 20.30 per cent YoY to Rs 12,29,310 crore as of September 30,while advances were up 15.8 per cent at Rs 10,38,335 crore.
Domestic retail loans grew 5.3 per cent while wholesale loans were up 26.5 per cent for the quarter. Overall, the retail loans stood at 48 per cent of total advances. Overseas loans accounted for 3 per cent of total advances.