Home Business HDFC Bank Q1 net profit increased by 19.6 percent, provides for ₹3,891.5 cr

HDFC Bank Q1 net profit increased by 19.6 percent, provides for ₹3,891.5 cr

by the owl speaks

Amid higher provisioning and a decrease of some ₹2,000 crop sales due to lockdown effects, private sector lender HDFC Bank received 19.6 percent growth in net profit of some ₹6,658.6 crore in the first quarter ended June 30, 2020 compared to ₹5,568.16 crore in the same period last year.

Net income from the bank (net interest plus other revenue) rose to about ₹19,740.7 crore for the same period last year from about 18,264.5.

Net interest income (interest received less interest spent) rose by 17.8 percent to around ₹15,665.4 crore year-on-year from ₹13,294.3 crore, led by 20.9 percent advance growth, and 24.6 percent deposit growth. Net interest margin was 4.3 per cent for the year.

“The continuing downturn in economic activity has led to a decrease in the origination of retail loans, the selling of third-party goods, the use by consumers of credit and debit cards, flexibility in payment activities and the waiving of some fees. As a result, fees / other profits is reduced by around ₹2,000 crore, “said HDFC Bank in a stock exchange filing.

For the same duration last year, the bank made provisions and contingencies of environ ₹3,891.5 crore as against some ₹2,613.7 crore. Contingent provisions of about ₹1,000 crore were included in the overall provisions for the current period.

The total size of the balance sheet was ₹1,545,103, up 22.1%. Total deposits rose to ₹1,189,387 crore by 24.6 percent.

“Continued focus on deposits by the Bank helped sustain a healthy liquidity coverage ratio at 140% well above the regulatory minimum. As of June 30 , 2020, total advances were around ₹1,003,299 crore, up 20.9 percent. “the bank said.

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