HDFC Bank net rises 18.4% in Q2 to Rs 7,513.1 crore

The gross and net non-performing assets were at 1.08 per cent of gross advances and 0.17 per cent of net advances as of September 2020, respectively.

By: ENS Economic Bureau

Mumbai | October 18, 2020 12:41 AM IST

2 min read

The bank’s continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 153 per cent, well above the regulatory requirement.

Despite the uncertainties triggered by the Covid pandemic, private lender HDFC Bank has posted a net profit of Rs 7,513.1 crore during the quarter ended September 2020 as against Rs 6,345 crore in the same period a year ago, an increase of 18.4 per cent.

The gross and net non-performing assets were at 1.08 per cent of gross advances and 0.17 per cent of net advances as of September 2020, respectively. Gross NPAs were at Rs 11,304 crore as of September 2020. However, following an interim order by the Supreme Court, accounts that would have otherwise been classified as NPA have not been and will not be, classified as NPA till such time the Supreme Court rules finally on the matter, it said.

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While the previous quarter largely bore the brunt of the pandemic, some of the softness continued into the current quarter leading to lower retail loan origination, use of debit and credit cards by customers, efficiency in collection efforts and waivers of certain fees, the bank said. As a result, fees/other income were lower by approximately Rs 800 crore. However, the loan and card momentum has improved over the previous quarter, thereby reducing the gap to less than half.

Total deposits as of September 2020 were Rs 12,29,310 crore, an increase of 20.3 per cent over September 30, 2019. Advances rose by 15.8 per cent in the quarter.

The bank’s net revenues (net interest income plus other income) grew to Rs 21,868.8 crore for the quarter ended September 2020 from Rs 19,103.8 crore for the quarter ended September 2019. Net interest income (interest earned less interest expended) for the quarter ended September 2020 grew by 16.7 per cent to Rs 15,776.4 crore from Rs 13,515.0 crore for the quarter ended September 2019, driven by asset growth of 21.5 per cent and a core net interest margin for the quarter of 4.1 per cent.

The bank’s continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 153 per cent, well above the regulatory requirement.

Meanwhile, the lender informed that its board of directors at the meeting held on Saturday approved appointment of Sashidhar Jagdishan as an additional director and also managing director and CEO of the bank.