Mumbai: HDFC Bank Ltd on Saturday said its first quarter net profit rose 21% on account of higher provisions and other income.
The bank reported a net profit of ₹5,568.16 crore for the three months ended 30 June compared with ₹4,601.44 crore in the year-ago period.
Net interest income, or the difference between the interest earned on loans and paid on deposits, grew 22.9% year-on-year to ₹13,294.3 crore in April-June. Other income, which includes core fee income, rose 27.2% to ₹4,970.3 crore during the reporting quarter.
Asset quality deteriorated marginally as gross non-performing assets (NPAs), as a percentage of total advances, rose to 1.4% in the June quarter compared to 1.33% in the year-ago period.
Provisions during the quarter rose 60% to ₹2,613.66 crore. In January-March, the bank had set aside ₹1,889.2 crore as provisions.
Post-provision, the net NPA ratio was at 0.43% against 0.39% in the March quarter and 0.41% in the year-ago period. The bank made specific loan loss and contingent provisioning of ₹2,413.5 crore as against ₹1,432.2 crore for the corresponding quarter
of the previous year. The bank also made general provisions of ₹200.2 crore, which includes additional provisions of ₹86 crore towards standard advances to the NBFC/HFC sector.
HDFC Bank's loan book saw year-on-year growth of 17% and deposits grew by 18.5%.
The board of directors has declared a special interim dividend of ₹5 per equity share of ₹2 to commemorate 25 years of the bank’s operations, the bank said in a press release.