HDFC Bank on Tuesday reported a 20.1 per cent growth in its September quarter net at Rs 4,151 crore on a rise in core income and narrowing expenses, but witnessed a jump in provisions mainly due to a restructured account. Without giving any details of the account which has been restructured under the 5:25 scheme, and the outstanding, the bank said it is a performing account and it is in dialogue on how to classify it as.
When asked if the account pertains to a list of divergences, as was reported by its smaller rival Axis Bank, its Deputy Managing Director Paresh Sukthankar said it may not be fair to call it as a divergence as the bank continues to be in dialogue with the regulator. “It is a standard, performing account with no outstanding dues for us. But we have set aside contingency provisions,” he said, adding that most of the Rs 397 crore marked as “general provisions” is towards this purpose.
Its overall provisions almost doubled to Rs 1,476 crore from the year ago period's Rs 749 crore. Axis Bank had said that the Reserve Bank has found that it has under-reported NPAs in nine accounts, which was one of the reasons for a dip in its earnings.