Q1 Results: HDFC Bank’s Profit Jumps Even As Provisions Rise
Net profit rose 21 percent year-on-year to Rs 5,568.16 crore in the quarter ended June.
HDFC Bank Ltd.’s quarterly profit jumped aided by other income even as provisions rose.
Net profit increased 21 percent year-on-year to Rs 5,568.16 crore in the quarter ended June, the private lender said in a stock exchange filing today. That nearly matched with the Rs 5,695-crore consensus estimate of analysts tracked by Bloomberg. Other income rose 30 percent over last year to Rs 4,970.3 crore, trumping analysts’ estimate of 20 percent increase.
Net interest income—or the core income of a bank—jumped 22.9 percent to Rs 13,294.3 crore, meeting the analysts’ forecast of Rs 13,280 crore.
- Gross non-performing assets ratio expanded to 1.4 percent from 1.36 percent in the previous quarter.
- Net NPA ratio stood at 0.43 percent from 0.39 percent in the March quarter.
- Provisions for bad loans advanced 38 percent quarter-on-quarter to Rs 2,613.7 crore.
The bank, as of June 30, reported contingent provisions of Rs 2,413.5 crore compared with Rs 1,432.2 crore over last year. Total provisions, the bank said, were 115 percent of the gross non-performing loans as of June-end.
Key Numbers (YoY)
- Cost-to-income ratio at 39.4 percent versus 40.1 percent.
- CASA deposits grew 12.8 percent.
- Operating expenses rose 18.9 percent to Rs 5,983.9 crore.
- Capital adequacy ratio at 16.9 percent from 14.6 percent.
The bank declared a special interim dividend of Rs 5 for every share with face value of Rs 2 to celebrate 25 years of its operations.
Shares of the country’s largest private lender by market value closed 1.2 percent lower on Friday.