The largest private lender, HDFC Bank, has managed to sustain its reputation with a strong show of numbers in its second-quarterly release for the financial year 2021-22. Standalone net profit for the bank came in at Rs 8,834.3 crore in Q2, up 17.6% against Rs 7,513.11 crore in the year-ago period.
HDFC bank also reported a steady rise in its income from interest in its second-quarter earnings report. The Mumbai-headquartered bank posted a 12.1% YoY rise in its Net Interest Income(NII). The lender informed that its NII stood at Rs 17,684.40 crore at the end of the quarter, compared to Rs 15,776.40 crore a year ago.
HDFC Bank’s total consolidated income rose to Rs 41,436.36 crore in the quarter ended September 2021, which stood at Rs 38,438.47 a year ago, about a 20% y-o-y jump. Bank’s revenue also maintained its upward journey, climbing 14.7% to Rs 25,085.2 crore in the quarter under review, from Rs 21,868.8 crore in the same quarter the previous year.
The lender reported a rise in its provisions and contingencies for the quarter, which rose to Rs 3,924.70 crores compared with Rs 3,703.50 crore in the same quarter a year ago. This includes the Rs 1,200 crore contingency provision the bank has set aside earlier.
Boasting one of the lowest gross NPAs in the banking sector, HDFC reported a further decline in its GNPA. Gross non-performing assets came at 1.35%, which stood at 1.47% in the previous quarter and 1.37% in the same quarter a year ago. However, Net NPA margins were up at 0.40% compared to 0.17% a year ago.
The bank beat the market estimates on the back of credit revival and strong asset quality. The company further said, “this continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 123%, well above the regulatory requirement, which positions the bank favourably to capitalise on the opportunities that would arise as the economy gains momentum during the festive months”
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Research Analyst: Bavadharini KS