HDFC Bank Reports 19.5% Increase In Q1 Profit On Strong Growth In Advances

On Saturday, HDFC Bank reported a 19.58 percent in net profit to Rs 6,658.62 crore for the June ended quarter from Rs 5,568.16 crore in the same quarter of the previous year.

Net interest income, that is the difference between interest earned and interest expended, grew by 17.8 percent in the April-June period to Rs 15,665.4 crore from Rs 13,294.3 crore last year. The increase in interest income was driven by growth in advances of 20.9 percent, and growth in deposits of 24.6 percent. The net interest margin for the quarter was at 4.3 percent.

Other income stood at Rs 4,075.3 crore, that is 20.6 percent of the net revenues for the quarter ended 30 June 2020 as against Rs 4,970.3 crore in June 2019.

"The continued slowdown in economic activity has led to a decrease in retail loan origination, sale of third party products, use of credit and debit cards by customers, efficiency in collection efforts and waivers of certain fees. As a result, fees/other income were lower by approximately Rs 2,000 crore," HDFC Bank said in its statement.

Provisions and contingencies for the quarter rose 48.89 percent year-on-year to Rs 3,891.52 crore. "Total provisions for
the current quarter included contingent provisions of approximately Rs 1,000 crore," it said.

Shares of the private lender closed 3.46 percent lower at Rs 1,099.15 on Friday.