HDFC Bank's September quarter net profit rises 18.4% to Rs 7,513 crore

Country’s largest private lender HDFC Bank’s net profit rose by 18.4 per cent to Rs 7,513.1 crore for second quarter ended September 2020 (Q2Fy21) on substantial growth in interest earnings and other income.

It had posted a net profit – profit after tax (PAT) -- of Rs 6,344.9 crore in the quarter ended September 2019 (Q2FY20). Sequentially, it had posted a net profit of Rs 6,658.6 crore in first quarter ended June 2020 (Q1Fy21).

On Friday (October 16, 2020), bank’s stock closed 2.55 per cent higher at Rs 1,199 per share on the BSE.

The net interest income (NII) grew by 16.7 per cent year-on-year (YoY), from Rs 13,515 crore in Q2FY20 to Rs 15,774.4 crore in Q2FY21.  Other income, comprising fee and commission, grew 27.9 per cent to reach Rs 6,092 crore in Q2FY21.

The provisions (factoring in non-performing assets, or NPAs) and contingencies rose to Rs 3,703.5 crore in Q2FY21, from Rs 2,700.6 crore in Q2FY20.  

Total provisions for the current quarter includes contingent provisions of approximately Rs 2,300 crore for NPAs and additional contingent provisions to make the balance sheet more resilient, bank said a statement.

The asset quality of the bank improved during the fourth quarter. The gross NPAs declined to 1.08 per cent in Q2FY21, from 1.38 per cent in Q2 FY20. The GNPAs were at 1.36 per cent at end of Q1Fy21.

The net NPAs were at 0.17  per cent in September 2020, down from 0.42 per cent in September 2019. Its net NPAs were at 0.33 per cent in June 2020 (Q1Fy21).

The total deposits rose 20.3 per cent at Rs 12,29,310 crore and advances grew 15.8 per cent YoY to reach Rs 10,38,335 crore as of September 2020.

The capital adequacy ratio stood at 19.1 per cent as of September 30, with tier I at 17 per cent.