HDFC Bank Second Quarter Results: Private Lender Reports 17.6% Increase in Net Profit and 12% Increase in NII
HDFC Bank Second Quarter Results: Private Lender Reports 17.6% Increase in Net Profit, 12% Increase in NII
New Delhi: Private lender HDFC Bank on Saturday announced stand-alone net profit of Rs 8,834 crore, up 18% for the quarter ended September 30, 2021. The lender posted net profit of Rs 7,513 crore during the period. Last year. HDFC Bank’s net income (net interest income plus other income) increased 14.7% to Rs 25,085.2 crore for the September quarter, compared to Rs 21,868.8 crore in the corresponding quarter of the year last.
The bank’s Net Internet Income (NII) (interest earned minus interest spent) of 12.1% to Rs 17,684.4 crore at T2FY22 from Rs 15,776.4 crore a year ago. “Advances increased 15.5%, reaching new highs thanks to relationship management, digital offering and product scope. Base net interest margin was 4.1%.” , he said in a regulatory dossier.
Advances increased to Rs 11.98 lakh crore at T2FY22 and the same increase of 4.4%, sequentially. Loan growth was supported by “the retail segment which grew 12.9% year-on-year and the commercial and rural banking segment which grew 27.6% year-on-year in the quarter.” , the lender said, adding that other wholesale loans were up about 6% year-on-year.
Provisions and contingencies for the quarter reached Rs 3,924.70 crore, compared to Rs 3,703.50 crore in the quarter last year. Total provisions for the quarter included contingent provisions worth Rs 1,200 crore, the bank said. Provisions and contingencies at the end of the June quarter stood at Rs 4,830.84 crore.
Other income (non-interest income) at Rs 7,400.8 crore represented 29.5% of net income for the quarter ended September 30, 2021 and increased by 21.5% from Rs 6,092.5 crore in the corresponding quarter of the previous year. The quality of Mumbai-based assets has improved sequentially.
Gross non-performing assets (GNPA) as a percentage of gross advances amounted to 1.35 percent compared to 1.47 percent in the June quarter and 1.37 percent in the previous year quarter. Excluding NPA in the agricultural segment, NPA for the September quarter was 1.2%. Net non-performing assets (ANP) stand at 0.40% of net advances as at September 30, 2021.
Shares of HDFC Bank closed Thursday up 2.86% at Rs 1,685.90 each on BSE.