Home >Industry >Banking >HDFC Bank Q2 results: Net profit jumps 18.4% to 7,513 crore, NII rises 16.7%

HDFC Bank on Saturday reported a 18.4% increase in its net profit to 7,513 crore for the quarter ended in September 2020. The profit in the year ago period was at 6,345 crore. The consolidate net profit for the quarter increased 16% year-on-year to 7,703 crore in Q2. The consolidated advances grew by 14% to 1,088,948 crore for the September quarter.

HDFC Bank's net interest income increased by 16.7% year-on-year to 15,776.4 crore during the quarter gone by. The private sector lender's net revenue grew to 21,868 crore in the September quarte.

The bank made provisions and contingencies amounting to 3,703.50 crore for the September quarter. "Total provisions includes contingent provisions of approximately 2,300 crore for proforma NPA as well as additional contingent provisions to make the balance sheet more resilient," the bank said.

Gross non-performing assets fell to 1.08% while net NPAs declined to 0.17% in Q2FY21. However, its provisions rose 37% to 3,703 crore and it said that total provisions for the current quarter includes contingent provisions of approximately 2,300 crore for proforma NPAs.

"While there has been some improvement in economic activities during the current quarter, the continued slowdown has led to a decrease in loan originations, the sale of third-party products, the use of credit and debit cards by customers and the efficiency in collection efforts," the bank said in filing.

The bank’s total advances were at 10.38 lakh crore in Q2 of FY21, an increase of 15.8% over the same period last year. The domestic retail loans grew 5.3% and domestic wholesale loans grew 26.5%, it said.

Bank's total balance sheet size grew 21.5% (YoY) to 1,609,248 crore in the September quarter. Total deposits reported a increase of 20.3% (YoY) to 1,325,072 crore. Its CASA ratio stood at around 42% as of September 2020, compared to 39.3 percent as of September 2019 and 40.1% in June 2020, it added.

During the quarter ended September 2020, HDFC Bank said it purchased loans aggregating 3,026 crore through the direct assignment route under the home loan arrangement with Housing Development Finance Corporation (HDFC).

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 chief executive officer of the bank.

His appointment is subject to the approval of the shareholders of the bank. Jagdishan's appointment will be for a period of three years starting October 27, 2020, as approved by the Reserve Bank of India vide its email dated August 3, 2020, it said.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
My ReadsRedeem a Gift CardLogout