HDFC Bank’s Q2FY21 net profit rises over 18% (Lead)

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Mumbai: HDFC Bank’s Q2FY21 net profit rises over 18%. Lending major HDFC Bank on Saturday reported an 18.4 percent increase in standalone net profit for the quarter ended September 30 of FY21 on a year-on-year (YoY) basis.HDFC Bank’s Q2FY21 net profit rises over 18%. The bank’s net profit for the second quarter of FY21 rose to Rs 7,513.1 crore on a YoY basis.

“While the previous quarter largely bore the brunt of the Covid-19 pandemic, some of the softness continued into the current quarter, leading to lower retail loan origination, use of debit and credit cards by customers, efficiency in collection efforts and waivers of certain fees,” the bank said in a statement.

“As a result, fees or other incomes were lower by approximately Rs 800 crore. However, the loan and card momentum has improved over the previous quarter, thereby reducing the gap to less than half,” it added.

Besides, the bank’s net interest income (interest earned less interest expended) for the quarter ended September 30 grew by 16.7 percent to Rs 15,776.4 crore from Rs 13,515.0 crore for the corresponding period of the previous year.

“The bank’s continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 153 percent, well above the regulatory requirement,” the statement said.

As per the statement, the bank continues to hold provisions as of September 30, 2020, against the potential impact of Covid-19 based on the “information available at this point in time and the same are in excess of the RBI prescribed norms”.

The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 6,304 crore as of September 30, 2020.

“Total provisions (comprising specific, floating, contingent and general provisions) were 195 percent of the reported gross NPAs or 154 percent of proforma gross NPAs as on September 30, 2020,” the statement said.

In terms of the Q2FY21 consolidated financial results, the bank reported a net profit of Rs 7,703 crore, up 16 percent over the quarter ended September 30, 2019.

Besides, consolidated advances grew by 14.9 percent from Rs 947,440 crore as on September 30, 2019, to Rs 1,088,948 crore as on September 30, 2020.

–IANS

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