HDFC Bank Q1FY22 Result
HDFC Bank's Q1FY22 net profit jumps by 16.1 pc to Rs 7,729.6 cr, NII grows by 8.6 pc
Mumbai/IBNS: India's largest private sector lender HDFC Bank reported a net profit of Rs 7,729.6 crore on a standalone basis, an increase of 16.1 per cent (year-on-year) over the quarter ended June 30, 2020.
The bank had earned Rs 6,658.6 crore during the same period last year.
Net interest income (interest earned less interest expended) for the April-June quarter 2021 grew by 8.6 per cent to Rs 17,009.0 crore from Rs 15,665.4 crore for the quarter ended June 30, 2020.
The bank said this growth was driven by advances growth of 14.4 per cent, and a core net interest margin of 4.1 per cent.
The Bank’s continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 126 per cent, well above the regulatory requirement, it said in a BSE filing.
Provisions and contingencies for the quarter ended June 30, 2021 were Rs 4,830.8 crore (consisting of specific loan loss provisions of Rs 4,219.7 crore and general and other provisions of Rs 611.1 crore) as against Rs 3,891.5 crore (consisting of specific loan loss provisions of Rs 2,739.8 crore and general and other provisions of Rs 1,151.7 crore) for the quarter ended June 30, 2020. Total provisions for the current quarter included contingent provisions of approximately Rs 600 crore.
The total credit cost ratio was thus at 1.67 per cent, as compared to 1.64 per cent for the quarter ending March 31, 2021 and 1.54 per cent for the Q1FY22, as the “second wave” of COVID-19 disrupted business activities for close to two thirds of the quarter, leading to a decrease in the efficiency in collection efforts, and a higher level of provisions.
From the figures furnished by the bank, the asset quality weakened in the first quarter. Gross non-performing assets were at 1.47 per cent of gross advances as on June 30, 2021, (1.3 per cent excluding NPAs in the agricultural segment) as against 1.32 per cent as on March 31, 2021 (1.2 per cent excluding NPAs in the agricultural segment) and 1.36 per cent as on June 30, 2020 (1.2 per cent excluding NPAs in the agricultural segment). Net non-performing assets were at 0.48 per cent of net advances as on June 30, 2021, the bank said.
HDFC Bank said it held floating provisions of Rs 1,451 crore and contingent provisions of Rs 6,596 crore as on June 30, 2021. Total provisions (comprising specific, floating, contingent and general provisions) were 146% of the gross non-performing loans as on June 30, 2021.
Other income (non-interest revenue) at Rs 6,288.5 crore was 27.0% of net revenues for the quarter ended June 30, 2021 and grew by 54.3% over ₹ 4,075.3 crore in the corresponding quarter of the previous year.
The four components of other income for the quarter ended June 30, 2021 were fees & commissions of Rs 3,885.4 crore (Rs 2,230.7 crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of Rs 1,198.7 crore (Rs 436.6 crore in the corresponding quarter of the previous year), gain on sale / revaluation of investments of Rs 601.0 crore (Rs 1,086.7 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveries and dividend, of Rs 603.5 crore (Rs 321.3 crore in the corresponding quarter of the previous year).
Pre-provision Operating Profit (PPOP) at Rs 15,137.0 crore grew by 18.0 per cent over the corresponding quarter of the previous year.
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