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HDFC Bank quarterly profit grows 20.2% to ₹3,894 crore

HDFC Bank quarterly profit grows 20.2% to ₹3,894 crore

A rise in core income helped HDFC Bank report a 20.2 per cent jump in June quarter net at Rs 3,894 crore, but the rash of farm loan waivers led to a dip in repayments leading to its highest NPA ratio in years.

The higher bad loans had the bank making higher provisions which almost doubled, which led it miss the street estimate on the bottomline. The city-headquartered bank's total provisions almost doubled to Rs 1,558 crore from Rs 866 crore a year ago. Higher provision includes Rs 121 crore set aside for its exposure to potentially stressful sectors even if it is standard.

The second largest private sector lender reported a 20.4 per cent rise in net interest income at Rs 9,370.7 crore, which along with a 20 per cent growth in advances helped net interest margin to widen to an above target 4.4 per cent. Other income grew 25.3 per cent to Rs 3,516.7 crore, helped largely by a 30 per cent growth in fees and commissions, the largest component.

Agencies

Agencies

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