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.

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