INSUBCONTINENT EXCLUSIVE:
NEW DELHI: HDFC Bank on Saturday reported a 17.7 per cent year-on-year (YoY) rise in net profit at Rs 6,927.70 crore
This included a taxation of Rs 2,246.60 crore.
The figure marginally missed ET NOW poll estimate of Rs 7,002 crore
HDFC Bank's Net interest income for the quarter climbed to Rs 15,204 crore from Rs 13,089 crore, driven by 21.3 per cent growth in
advances and a 24.3 per cent growth in deposits.
The NII figure beat ET NOW poll estimate of Rs 14,900 crore
Non-interest income jumped 28.4 per cent to Rs 6,032.60 crore, the bank said.
The private lender reported a doubling of provisions and
contingencies to Rs 3,784.50 crore in March quarter compared with Rs 1,899.20 crore in the same quarter last year
Out of the total provisions, Rs 1,451 crore were floating provisions and the rest Rs 2,996 crore were contingent provisions
Gross NPA for the quarter eased to 1.26 per cent from 1.42 per cent in December quarter and 1.36 per cent in the year-ago quarter.
HDFC
Bank said the March quarter was marked by a considerable slowdown in economic activity following the outbreak
Due to strict social distancing policy, the bank did see a hit in volumes in terms of loan origination, distribution of third party
activities and payments product activities.
Thus, "We could not optimise our collection efforts, and as a result of which fees income were
lowered by Rs 450 crore," it said.
Pre-provision operating profit (PPOP) jumped 19.5 per cent to Rs 12,958.80 crore
The credit cost ratio came in at 0.77 per cent against 0.92 per cent in December quarter and 0.69 per cent in the same quarter last
year.
The biggest private lender said the extent to which the pandemic will impact the bank's results will depend on future developments,
which are highly uncertain.
Since the RBI has decided that banks should not make any further dividend payouts from profits pertaining to the
financial year ended March 31, until further instructions -- in a bid to conserve capital in an environment of heightened uncertainty caused
by Covid-19 -- the board of directors of HDFC Bank has not proposed any final dividend for the year.
