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HDFC Bank net profit zooms 20% in June quarter to Rs 6,659 crore

Bank’s provision and contingencies also witnessed a sharp increase of 48.89 per cent YoY to Rs 3,891.52 crore during the quarter under review.

SNS | New Delhi |

Private lender HDFC Bank on Saturday posted a 19.6 per cent YoY rise in standalone net profit at Rs 6,658.62 crore for quarter ended June 30 of FY21. The numbers stood at Rs 5,568.16 crore in the corresponding quarter in 2019-20.

The bank’s net profit for the first quarter of FY21 rose to Rs 6,658.6 crore, HDFC Bank said. The bank’s net revenues grew to Rs 19,740.7 crore for the quarter ended June 30, 2020 against Rs 18,264.5 in the quarter ended June 30, 2019, it said.

The net interest income of the lender for the quarter ended June 30, 2020 grew by 17.8 per cent to Rs 15,665.4 crore from Rs 13,294.3 crore for the same period in 2019, driven by 20.9 per cent growth in advances and 24.6 per cent growth in deposits. The net interest margin for the quarter was at 4.3 per cent.

Bank’s provision and contingencies also witnessed a sharp increase of 48.89 per cent YoY to Rs 3,891.52 crore during the quarter under review.

“Total provisions for the current quarter included contingent provisions of approximately Rs 1,000 crore,” the bank said.

“The core credit cost ratio was 1.08 per cent against 0.77 per cent in the quarter ending March 31, 2020 and 1.07 per cent in the quarter ending June 30, 2019,” the HDFC Bank said.

The bank improved on its asset front with gross non-performing assets (NPAs) falling to 1.36 per cent of the gross advances as on June 30, 2020 from 1.40 per cent by June-end 2019. In value terms, gross NPAs or bad loans were at Rs 13,773.46 crore as against Rs 11,768.95 crore.

Likewise, net NPAs fell to 0.33 per cent (Rs 3,279.96 crore) from 0.43 per cent (Rs 3,567.18 crore), the bank said in the filing.

However, the bank’s provisions for bad loans and contingencies during April-June 2020-21 were raised to Rs 3,891.52 crore as against Rs 2,613.66 crore in the year-ago same period.

“The continued slowdown in economic activity has led to a decrease in retail loan origination, sale of third party products, use of credit and debit cards by customers, efficiency in collection efforts and waivers of certain fees. As a result, fees or other income were lower by approximately Rs 2,000 crore,” reports quoted the private lender as saying.