HDFC Bank rose 1.23% to Rs 1213.75 after the bank's net profit increased 18.4% to Rs 7513.11 crore on a 6.9% rise in total income to Rs 36,069 crore in Q2 September 2020 over Q2 September 2019.
Profit before tax (PBT) stood at Rs 10,110.28 crore, rising 12.4% compared with Rs 8,997.40 crore in the same period last year. Tax expense fell by 2% to Rs 2,597.17 crore in Q2 September 2020 over Q2 September 2019.On the asset quality side, gross non-performing assets (NPAs) stood at Rs 11,304.6 crore as on 30 September 2020 as against Rs 13,773.46 crore as on 30 June 2020 and Rs 12,508.15 crore as on 30 September 2019. The ratio of gross NPAs to gross advances stood at 1.08% on 30 September 2020 as against 1.36% as on 30 June 2020 and 1.38% as on 30 September 2019. The ratio of net NPAs to net advances stood at 0.17% as on 30 September 2020 as against 0.33% as on 30 June 2020 and 0.42% as on 30 September 2019.
The bank's provisions and contingencies increased by 37% to Rs 3,703.50 crore in Q2 September 2020 from Rs 2700.68 crore in Q2 September 2019. The private lender said total provisions of current quarter includes contingency provisions of approximately Rs 2300 crore for proforma NPA as additional contingent provisions to make the balance sheet more resilient. The provisions held by the bank are in excess of the RBI prescribed norms.
Pre-provision Operating Profit (PPOP) at Rs 13,813.8 crore grew by 18.1% over the corresponding quarter of the previous year.
HDFC Bank said it is net interest income (interest earned less interest expended) for Q2 September 2020 grew by 16.7% to Rs 15,776.4 crore from Rs 13,515 crore recorded in Q2 September 2019, driven by asset growth of 21.5% and core net margin of 4.1%. The bank's continued focus on deposits helped in maintenance for a healthy liquidity coverage ratio at 153%, above the requirement.
Total deposits stood at Rs 12,29,310 crore in Q2 September 2020, rising by 20.3% over Q2 September 2019. CASA deposits grew by 27.5% with saving deposits at Rs 348,432 crore and current account deposits at Rs 163,019 crore. Total advances were at Rs 10,38,335 crore in Q2 September 2020, rising by 15.8% over Q2 September 2019.
The board of HDFC Bank at its meeting held on 17 October 2020 approved the appointment of Sashidhar Jagdishan as an additional director and as the managing director and chief executive officer of the bank, subject to the approval of the shareholders of the bank, for a period of three years from 27 October 2020, as approved by the Reserve Bank of India vide its email dated 03 August 2020.
HDFC Bank is one of India's leading private banks. As of 30 September 2020, the bank has 5,430 branches and 15,292 ATMs across 2,848 cities.
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