Hdfc Bank net profit slightly below estimates in June quarter, but net interest income in line

India’s largest private sector lender, HDFC Bank, on Saturday reported a 19% year-on-year jump in its June quarter net profit to 9,196 crore rupees, but missed Street expectations, polled by CNBC -TV18.

Core net interest income increased by 14.5% to Rs 19,481.4 crore from Rs 17,009 crore in the prior year quarter on the back of 22.5% growth in advances . The base net interest margin (NIM) was 4%.

From an asset quality perspective, the gross non-performing assets (NPA) ratio improved to 1.28% as of June 30, from 1.47% a year ago. The bank said that excluding NPAs from the seasonal agricultural segment, the GNPA would be 1.06% currently compared to 1.26% in the same period last year.

Overall provisions for the quarter under review fell to Rs 3,187.73 crore from Rs 4,830.84 crore a year ago, the bank said, adding that the cost of credit ratio improved to 0 .91% against 1.67%.

The bank holds floating provisions of Rs 1,451 crore and contingent provisions of Rs 9,630 crore, it said, adding that the total provisions it carries represent 170% of GNPA.

Deposit growth was 19.2%, the bank said, adding that it added 2.6 million liability relationships during the quarter.

Other income, excluding trading and mark-to-market losses, jumped 35% to Rs 7,699.99 crore on the back of higher fees and commissions, foreign exchange derivatives income and miscellaneous income which included collections and dividends, the bank said.

Amid tighter yields that are widely expected to result in setbacks for banks’ treasury operations, the lender reported a loss of Rs 1,311.7 crore on the sale or revaluation of investments vs. a profit of Rs 601 crore reported during for the quarter ended June 2021.

The bank added 10,932 employees along with 36 branches to bring the overall network to more than 6,000 during the quarter.

On the loan growth side, growth in HDFC Bank’s business and wholesale advances fell to 15.7%, retail loans increased by 21.7% and commercial and rural bank loans increased by 28%. .9%.

Among the subsidiaries, after-tax profit of brokerage firm HDFC Securities fell to Rs 189.3 crore from Rs 251.1 crore, while non-bank financial HDB Financial Services saw its net profit jump to Rs 441.3 crore vs Rs 88.6 crore earlier.

Abhishek Kothari’s Research Contributions

(Edited by : Abhishek Jha)

First post: STI

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