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. 


  • Standalone net profit stood at  Rs 8,834.3 crore, up 17.6% year on year basis. 
  • Total advances were up 15.5% YoY totalling to Rs 11,98,837 crore. This growth is thrice the average growth of the banking sector. 
  • Total deposits climbed 14.4% YoY to Rs 14,06,343 crore.
  • During the quarter, HDFC opened 256 new branches and installed 1352 new ATMs across the country. Total provisions held as of 30 September 2021 were 163% of the gross NPA on the same date. 
  • Other income of Rs 7,400.8 crores constituted 29.5% of the net revenues and grew handsomely at 21.5% YoY.
  • Gross NPA showed a marginal decline and stood at 1.35% against 1.37% a year ago. 
  • Lender’s Capital Adequacy Ratio (CAR) stood at 20%, comfortably above the regulatory requirement of 11.07%.


  • Provisions that stood at Rs 3924.7 crore though were up y-o-y basis showed a decline of 18.8% QoQ. 
  • General and other provisions were also down to Rs 1,638.3 crore from Rs 2,462.9 crore a year ago. 
  • Net NPA margins rose considerably compared to the same quarter a year ago, clocking 0.40% compared to 0.17% a year ago. 
  • Gains from sale or revaluation of investments fell from  Rs 1,016.2 crore a year ago to Rs 675.5 crore in the quarter under review. 

Sector-wise revenue growth:

  • CASA deposits rose 28.7%, with savings account deposits contributing Rs 452,381 crore and current account deposits contributing Rs 205,851 crore.
  • The foreign exchange & derivatives revenue for the Q2FY22 was up at 867.3 crores compared to Rs 560.4 crore a year ago.
  • The retail loans distribution grew 12.9% y-o-y.
  • Commercial and rural banking loans climbed 27.6% y-o-y. 

Management comments

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”