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HDFC Bank Q1 results: Profit rises 16.1% to Rs 7,730 crore

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Mumbai: HDFC Bank on Saturday reported a 16.1 per cent year-on-year rise in standalone net profit at Rs 7,729.60 crore compared with Rs 6,658,60 crore in the same quarter last year. HDFC Bank said the second wave of Covid disrupted business activity for close to two-third of the quarter, leading to a drop in efficiency in collection efforts and higher levels of provisions. Net interest income (NII) for the quarter rose to Rs 17,009 crore from Rs 15,665.70 crore YoY, led by 14.4 per cent rise in advances and a core net interest margin of 4.1 per cent.
The bank said it made provisions worth Rs 4,219.70 crore for the quarter compared with Rs 3,891.5 crore in the year-ago quarter and Rs 4,694 crore in the March quarter. Provisions and contingencies for the quarter included specific loan loss provisions of Rs 4,219.70 crore and general and other provisions of Rs 611.10 crore.
Gross non-performing asset (NPA) came in at 1.47 per cent compared with 1.32 per cent in the March quarter, and 1.36 per cent in the year-ago quarter. “The disruptions led to decrease in retail originations, sale of third-party products, card spends, efficiency in collection efforts. The lower business volumes, coupled with higher slippages, resulted in lower revenues, as well as enhanced levels of provisioning,” the bank said.
Pre-provision operating profit (PPoP) for the quarter rose 18 per cent to Rs 15,137 crore. The liquidity coverage ratio stood at 126 per cent, well above the regulatory requirement.

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