The country’s largest private sector lender HDFC Bank on Saturday reported a 14.36 per cent jump in consolidated net profit to Rs 8,760 crore for the December quarter, driven by a surge in core income.
At the standalone level, net profit for the three-month period grew 18.09 per cent to Rs 8,758.29 crore, on the back of a 15.1 per cent growth in the core net interest income at Rs 16,317 crore. Its deposits grew 19.1 per cent and the share of low-cost current and savings account deposits was 43 per cent. HDFC Bank is the first major lender to declare its results for the December quarter. This is also the maiden earnings declaration under new chief executive and managing director Sashidhar Jagdishan, who succeeded Aditya Puri as the head of the bank.The bank’s credit growth came at 15.6 per cent, while the net interest margin was 4.2 per cent. The non-interest income grew 11 per cent to Rs 7,443 crore, largely on the back of a gain or revaluation in an investment at Rs 1,109 crore, which stood at Rs 676 crore in the year-ago period.
The results showed an improvement in the asset quality with the gross non-performing assets ratio stood at 0.81 per cent of the total assets as against 1.42 per cent in the year-ago period and 1.08 per cent at the end of the preceding September quarter, the bank said.If one were to exclude the benefit of the Supreme Court order asking banks not to classify stress during the moratorium period in NPA computation, the GNPA ratio would have been at 1.38 per cent, it added.Its overall provisions and contingencies for the reporting quarter, which saw the economy trying to recover from the reverses of the pandemic, grew to Rs 3,414 crore as against Rs 3,043 crore in the year-ago period.
It held contingent provisions of Rs 8,656 crore and floating provisions of Rs 1,451 crore as of Dec 31.It said 0.5 per cent of its Rs 10.82 lakh crore in advances have been restructured under the special scheme announced by the RBI to handle the COVID-related stress.