MUMBAI: HDFC Bank reported a 20.6 per cent jump year-on-year in net profit for the July-September quarter at Rs 5,005.7 crore even as its net interest income rose 20.6 per cent to Rs 11,763.4 crore, the company said in a press release on Saturday. The bank said its net interest margin rose 10 basis points (0.10 per cent) over the previous quarter to 4.3 per cent during the quarter. Stable asset quality and growth in fee income contributed to rise in net profits.
Total income for the quarter was up by 21.2 per cent YoY at Rs 28,215 crore, and net revenues grew by 18.1 per cent to Rs 15,779 crore. Fee income rose by 26 per cent to Rs 3,295 crore.Provisions and contingencies for Q2 rose 23 per cent to Rs 1,820 crore including specific loan provisions of Rs 1,572.5 crore and general provision and other provisions of Rs 247.5 crore. The bank said there are no specific slippages in any specific corporate loans, but there is some spike in SME loans and some pain in retail loans.
Bank’s deposit growth continued to be higher than the average industry numbers – deposits at Rs 8,33,364 crore as at the end of September was higher by 20.9 per cent over last year. Savings account deposits grew by 18.7 per cent and current account deposits by 17.7 per cent, the bank said. Time deposits were at Rs 4,83,665, higher by 22.8 per cent over last year. “The focus on deposits has helped in maintenance of a healthy liquidity coverage ratio at 118 per cent, much above the regulatory requirement,” the bank said.
HDFC Bank said it is too early to say if funds from mutual funds are moving to bank deposits. “Deposit acquisition – reasonable amount of flows since the fourth quarter of last year. We are not bidding for high cost deposit acquisition,” it said. Cost of funds have been moving up, it admitted, but said the pace at which it has been moving up has come down.
The recent move by the Reserve Bank of India on improving liquidity for the NBFC sector would not compel the way it would lend or not to the sector, the bank said, explaining that they are rather comfortable on the liquidity front.
Gross Non-Performing Assets (NPAs) remained stable at 1.33 per cent for the September quarter, and net non-NPAs were at 0.4 per cent of net advances. The bank had a high coverage ratio of 70 per cent at the end of second quarter.
The lender’s retail loan portfolio rose 23.8 per cent compared to the year-ago period, while the overall advances stood at Rs 7,50,838 crore. Total deposits grew 20.9 per cent to Rs 8,33,364 crore, with current account and savings account deposits rising by 18.3 per cent.As of September, the bank’s advances were at Rs 7,50,838 crore, up 24.2 per cent YoY. Retail loans were up 23.8 per cent YoY and domestic wholesale loans grew by 24.7 per cent YoY.
ICICI Lombard net jumps 43.6%
New Delhi: ICICI Lombard General Insurance Company on Saturday reported a 43.6 per cent jump in net profit to I293 crore for the second quarter ended September 30 this fiscal. The company’s net profit in the corresponding quarter of FY18 was at I204 crore. The gross direct premium income increased to I3,530 crore during the quarter.