HDFC Bank Q2 Consolidated Profit Rises 18% To Rs 9,096 Cr, Gross NPA Up By 1.35%

HDFC Bank in a statement said the total consolidated income during the quarter under review rose to Rs 41,436.36 crore from Rs 38,438.47 crore in July-September 2020, PTI reported.

New Delhi: HDFC Bank on Saturday reported an 18 percent increase in its consolidated net profit at Rs 9,096 crore for the second quarter, which ended last month.

HDFC Bank had in the corresponding quarter a year ago posted a consolidated net profit of Rs 7,703 crore.

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HDFC Bank in a statement said the total consolidated income during the quarter under review rose to Rs 41,436.36 crore from Rs 38,438.47 crore in July-September 2020, PTI reported.

The country’s biggest private sector lender earned a net profit of Rs 8,834.3 crore, an increase of 17.6 percent over the quarter ended September 30, 2020, after providing Rs 3,048.3 crore for taxation on a standalone basis.

The statement added that HDFC Bank had earned a net profit Rs 7,513.1 crore in the same quarter a year ago on standalone basis.

The total income (standalone) of the country’s biggest private sector lender increased to Rs 38,754.16 crore in the second quarter of fiscal year 2022 from Rs 36,069.42 crore in the year-ago quarter.

HDFC Bank’s net interest income (interest earned less interest expended) grew by 12.1 percent to Rs 17,684.4 crore for the quarter ended September 2021 from Rs 15,776.4 crore in the corresponding quarter last year.

Besides, the bank’s profit before tax grew by 17.5 percent at Rs 11,882.6 crore for the quarter ended September 30, 2021, over corresponding quarter of the previous year.

There is, however, a slight deterioration on the asset front with the bank’s gross non-performing assets rising to 1.35 percent of the gross advances as on September 30, 2021, as against 1.08 percent at the end of the same quarter in 2020.

Due to impact of the Covid-19 pandemic, the gross NPAs or bad loans in absolute value increased to Rs 16,346.07 crore from Rs 11,304.60 crore at the end of the corresponding period of the last fiscal year.

Likewise, HDFC Bank’s net NPAs rose to 0.40 percent (Rs 4,755.09 crore) from 0.17 percent (Rs 1,756.08 crore) at the end of September 30 last year.

The provisioning for bad loans and contingencies, as a result, rose to Rs 3,924.66 crore for the second quarter of fiscal year 2022 as against Rs 3,703.50 crore during the year-ago period.

HDFC Bank while talking about the impact of Covid-19 on the business in its statement said the pandemic fear as well as restrictions on business and individual activities led to significant volatility in global and Indian financial markets and a significant decrease in global and local economic activities.

The statement added that disruptions following the Covid-19 outbreak have impacted loan originations, the sale of third-party products, the use of credit and debit cards by the customers and the efficiency in collection efforts resulting in increase in customer defaults and consequent increase in provisions there against.

“The extent to which the COVID-19 pandemic will continue to impact the bank's results will depend on ongoing as well as future developments, which are uncertain, including, among other things, any new information concerning the severity of the COVID-19 pandemic, and any action to contain its spread or mitigate its impact whether government-mandated or elected by us,” HDFC Bank said, PTI reported.

The country’s biggest private sector lender said the Capital Adequacy Ratio (CAR) was at 20 percent as on September 30, 2021 as compared to 19.1 percent at the end of September 30, 2020.

The regulatory requirement is 11.075 percent, including a Capital Conservation Buffer of 1.875 percent, and an additional requirement of 0.20 percent on account of the HDFC Bank being identified as a Domestic Systemically Important Bank (D-SIB).

The bank raised Basel III compliant Additional Tier 1 (AT1) Notes of USD 1 billion (about Rs 7,423.75 crore) and Basel III compliant AT1 Bonds of Rs 739 crore during the quarter ended September 30 this year.

HDB Financial Services Limited (HDBFSL), a non-deposit-taking non-banking finance company (NBFC), earned a profit of Rs 191.7 crore compared to a loss of Rs 85 crore for the quarter ended September 30 last year, HDFC Bank said with regard to its subsidiaries.

Besides, HDFC Securities Limited (HSL) helped by buoyant market conditions reported a 44 percent increase in profit after tax at Rs 239.6 crore, as against Rs 165.8 crore for the quarter ended September 30 last year.

HDFC Bank posted a 17 percent increase in net profit at Rs 16,564 crore for the half-year ended September 30, 2021, as against Rs 14,172 crore in the same period the previous year.

The country’s biggest private sector lender earned a total income of Rs 75,525.6 crore against Rs 70,522.7 crore in the corresponding period of 2020.