HDFC Bank Q1 Profit Rises by 20% to Rs 6,659 Crore

Cornelia Mascio
Luglio 19, 2020

Its net interest margin - a key indicator of a bank's profitability - stood at 4.3 per cent in the April-June period, unchanged from the previous quarter.

Mumbai: The HDFC Bank on Saturday (July 18, 2020) said that its net profit rose to Rs 6,658.6 crore for the quarter ended on June 30, 2020, which is an increase of 19.6% over the quarter ended June 30, 2019. The country's largest private sector lender also warned of higher defaults because of the Covid-19 crisis leading to more provisions in the period ahead.

While announcing its June quarter results, the lender said.

The quarter saw the private sector bank posting a net profit of Rs 6,658.62 crore compared with Rs 5,568.16 crore a year ago because of a good growth in advances. Its group head and "change agent" Sashidhar Jagdishan, who is reported to be among the selected candidates to succeed Puri, earned a salary of Rs 2.91 crore in FY20, as per the annual report.

Income of the bank rose to Rs 34,453.28 crore in June quarter 2020-21 from Rs 32,361.84 crore in the year-ago same period, HDFC Bank said in a regulatory filing.

The former HDFC Bank and Yes Bank executive is headed to join south-based CSB Bank. "Such resilient performance is highly comforting, however, we would be closely monitoring moratorium data, management's recent assessment of Covid impact and management transition", he said.

Brokerages such as ICICI Securities had expected the bank to post net profits in the region of Rs 7,000 crore. Specific loan loss provisions amounted to Rs 2,739.8 crore while general and other provisions stood at Rs 1,151.7 crore. As predicted by analysts, HDFC Bank's asset quality fell with the percentage of gross non-perorming assets (GPA) at 1.36%, which 10 basis points (bps) higher than a quarter ago.

Other income (non-interest revenue) at Rs 4,075.3 crore was 20.6% of the net revenues for the quarter ended June 30, 2020, as compared to Rs 4,970.3 crore in the corresponding quarter ended June 30, 2019. The bank also continues to hold provisions against the potential impact of COVID-19 which are in excess of the RBI prescribed norms.

Net interest income - difference between interest earned and interest expended - was up by 17.8 per cent to Rs 15,665.40 crore.

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