HDFC Bank’s First Quarter Net Profit Rises 20.2%, Provisions Increase
HDFC Bank profit rises 20.2%, NII increases 22%
HDFC Bank Ltd.’s net profit increased 20.2 percent to Rs 3,238 crore in the first quarter of the financial year 2016-17. The profit performance was in line with analyst estimates compiled by Bloomberg.
Net interest income rose 21.8 percent to Rs 7,781 crore, compared to the same quarter last year. Analysts had projected Rs 7,300 crore.
Gross non performing assets stood at 1.04 percent of the loan book, up from 0.94 percent in the previous quarter, the lender said in its filing to the stock exchanges. About 40 percent of the increase in Gross NPAs came from small and medium business portfolio.
Provisions rose 30.8 percent from the previous quarter to Rs 8,667 crore.
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Margin Performance
Net interest margin improved 10 basis points from the previous quarter to 4.4 percent. Paresh Sukthankar, the deputy managing director of the bank told reporters that margins will remain in the same range in the near term.
Margins will likely remain in the 4.0-4.4 percent range.Paresh Sukthankar, Deputy MD, HDFC Bank
Loan Growth
The loan book grew 23.2 percent, with domestic retail loans expanding 24.5 percent led by personal loans, credit cards, and home loans. Commercial vehicle business grew 18.8 percent, while the auto loans portfolio increased 18.9 percent.
