- Its net profit on a standalone basis rose to Rs 9,195.99 crore from Rs 7,729.64 crore
- Core Net Interest Margin (NIM) stood at 4 per cent
- The gross NPA ratio improved to 1.28% by June 30, as against 1.47% in the year-ago period.
Largest private sector lender HDFC Bank on Saturday reported a 20.91 per cent rise in its June quarter net profit at Rs 9,579.11 crore. On a standalone basis, its net profit rose to Rs 9,195.99 crore from Rs 7,729.64 crore in the year-ago period, but was down from Rs 10,055.18 crore in the March quarter.
Core net interest income grew 14.5 per cent to Rs 19,481.4 crore, up 22.5 per cent in advances, from Rs 17,009 crore in the year-ago quarter. Core Net Interest Margin (NIM) stood at 4 per cent. Other income, excluding trading and mark-to-market losses, rose 35 per cent to Rs 7,699.99 crore on account of increase in fees and commissions, foreign exchange derivatives revenue and miscellaneous income including realizations and dividends, the bank said.
Amid hardening of yields, which are widely expected to reverse for banks’ treasury operations, the lender reported Rs 1,311.7 crore on sale or revaluation of investments against a profit of Rs 601 crore reported in the quarter ended June 2021. reported the loss. Deposit growth came in at 19.2 per cent, the bank said, adding it added 2.6 million liability relationships during the quarter.
From an asset quality perspective, the gross non-performing assets (NPA) ratio rose to 1.28 per cent as of June 30, as against 1.47 per cent in the year-ago period. The bank said that if one excludes NPAs in the seasonal agriculture segment, the GNPA will now stand at 1.06 per cent as against 1.26 per cent in the same period last year.
Total provisioning for the quarter under review declined to Rs 3,187.73 crore from Rs 4,830.84 crore in the year-ago period, the bank said, adding that the credit cost ratio improved to 0.91 per cent as against 1.67 per cent. The bank has provisional provisions of Rs 1,451 crore and contingency provisions of Rs 9,630 crore, adding that the total provisioning is 170 per cent of GNPA.
It added 36 branches along with 10,932 employees during the quarter to take the total network to over 6,000. Low cost current and savings account deposits accounted for 45.8 per cent of the total deposit base. On the credit growth side, HDFC Bank’s corporate and wholesale advances growth decelerated to 15.7 per cent, retail loans at 21.7 per cent and commercial and rural banking loans grew 28.9 per cent.
The total capital adequacy stood at 18.1 per cent as on June 30, 2022, as against 19.1 per cent in the year-ago period. Among subsidiaries, profit after tax of brokerage HDFC Securities declined to Rs 189.3 crore as against Rs 251.1 crore, while net profit of non-bank financier HDB Financial Services increased from Rs 88.6 crore to Rs 441.3 crore.
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