HDFC Bank Q1FY22 YoY net profit up 16.1%
Mumbai, July 17, 2021
HDFC Bank on Saturday reported a year-on-year (YoY) rise of 16.1 per cent in its net profit for the first quarter (Q1) of financial year 2021-22 (FY22).
Accordingly, the bank's net profit increased to Rs 7,729.6 crore during the quarter under review ended June 30 in the current fiscal, over the quarter ended June 30, 2020.
Besides, the bank's net interest income (income earned less interest expended) rose to Rs 17,009.0 crore from Rs 15,665.4 crore for the quarter ended June 30, 2020.
"During the quarter, the country was hit by a 'second wave' of Covid-19, with a significant surge in cases following the discovery of mutant coronavirus strains. While there was an improvement towards the end, business activities remained curtailed for almost two thirds of the quarter," the bank said.
"These disruptions led to a decrease in retail loan originations, sale of third party products, card spends and efficiency in collection efforts. The lower business volumes, coupled with higher slippages, resulted in lower revenues, as well as an enhanced level of provisioning," it said.
As per the bank, provisions and contingencies for the quarter under review were Rs 4,830.8 crore from Rs 3,891.5 crore for the quarter ended June 30, 2020.
"Total provisions for the current quarter included contingent provisions of approximately Rs 600 crore."
Furthermore, the bank reported that gross non-performing assets were at 1.47 per cent of gross advances as against 1.32 per cent as on March 31, 2021 and 1.36 per cent as on June 30, 2020.
"Net non-performing assets were at 0.48 per cent of net advances as on June 30, 2021."
"Bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 6,596 crore as on June 30, 2021. Total provisions were 146 per cent of the gross non-performing loans as on June 30, 2021."
In terms of consolidated results, the bank's net profit reported a rise of 14.4 per cent to Rs 7,922 crore over the quarter ended June 30, 2020.
"Consolidated advances grew by 13.7 per cent from Rs 1,053,683 crore as on June 30, 2020 to Rs 1,197,876 crore as on June 30, 2021."