HDFC Bank Q1 profit jumps 16.1% to Rs 7,729.6 crore, NII rises 8.6%
Country's largest private sector lender HDFC Bank on July 17 reported a 16.1 percent year-on-year growth in standalone profit at Rs 7,729.64 crore for the quarter ended June 2021 despite elevated provisions.
Higher other income and pre-provision operating profit along with NII supported profitability. The bank reported a profit of Rs 6,658.62 crore in Q1 FY21.
Net interest income, the difference between interest earned and interest expended, grew by 8.6 percent to Rs 17,009 crore compared to the year-ago quarter, with loan growth of 14.4 percent and a core net interest margin of 4.1 percent. Deposits, at Rs 13.45 lakh crore grew, by 13.2 percent YoY.
The bank, in its BSE filing, said its continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 126 percent, well above the regulatory requirement.
Provisions and contingencies for the quarter ended June 2021 were at Rs 4,830.8 crore (including contingent provisions of Rs 600 crore), against Rs 3,891.5 crore for the same quarter last year, and Rs 4,693.7 crore in March quarter 2021.
The total credit cost was at 1.67 percent in June quarter 2021, against 1.64 percent in March 2021 quarter, and 1.54 percent in June 2020 quarter, 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, said HDFC Bank.
Asset quality weakened during the quarter. Gross non-performing assets were at 1.47 percent of gross advances in Q1 FY22, against 1.32 percent in Q4 FY21, and net non-performing assets were at 0.48 percent against 0.40 percent.
Pre-provision operating profit stood at Rs 15,137 crore, up 18 percent over the corresponding quarter of the previous year, said HDFC Bank.
