Private sector lender HDFC Bank reported a 16.1 per cent increase in its standalone net profit for the quarter ended June 30, 2021 at ₹7,729.6 crore.
Its net profit was ₹6,658.62 crore in the first quarter of last fiscal.
For the quarter ended June 30, 2021, HDFC Bank’s net revenue increased by 18 per cent to ₹23,297.5 crore from ₹19,740.7 crore a year ago.
Net interest income for the first quarter of the fiscal grew by 8.6 per cent to ₹17,009 crore from ₹15,665.4 crore a year ago.
“This was driven by advanced growth of 14.4 per cent, and a core net interest margin of 4.1 per cent,” the lender said in a statement on Saturday.
Other income surged by 54.3 per cent to ₹6,288.5 crore in the April to June 2021 quarter from ₹4,075.3 crore in the corresponding quarter of the previous year.
Noting that the country was hit by a second Covid wave in the first quarter of the fiscal, the bank said business activities remained curtailed for almost two-thirds of the quarter.
“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 further said.
Provisions and contingencies for the quarter jumped up by 24.1 per cent to ₹4,830.84 crore from ₹3,891.52 crore a year ago.
Total provisions for the current quarter included contingent provisions of approximately ₹600 crore.
Asset quality saw some stress. Gross non performing assets rose to ₹17,098.51 crore or 1.47 per cent of gross advances as on June 30, 2021 from 1.36 per cent a year ago.
Net NPAs was 0.48 per cent of net advances at the end of the first quarter from 0.33 per cent a year ago.
There were 33 borrower accounts having an aggregate exposure of ₹10.64 crore to the bank, where resolution plans had been implemented and now modified under RBI's Resolution Framework 2.0 dated May 5, 2021.