NEW DELHI: Private-sector lender HDFC Bank on Saturday reported a substantial 20 per cent rise in its standalone net profit for the quarter ended June 30.
According to documents filed with the stock exchanges, the bank posted a net profit of Rs 6,658.62 crore against Rs 5,568.16 crore in the corresponding period of last year.
The profits were primarily driven by an increase in its interest income, with net interest income growing by 17.8 per cent to Rs 15,665.4 crore from Rs 13,294.3 crore during the quarter. Total income grew from Rs 32,361.84 crore last year to Rs 34,453.28 crore in the April-June 2020 quarter.
The rise in interest income has been, in turn, pushed along by a sharp rise in advances and deposits both, the bank said. Total advances grew by 20.9 per cent while deposits grew by a faster 24.6 per cent.
However, the decrease in economic activity had also led to a decrease in new retail loans, sales of third party products, use of credit and debit cards by customers, efficiency in collection efforts and waivers of certain fees.
"As a result, fees/other income were lower by approximately Rs 2,000 crore," the bank said.
HDFC has also improved on the asset quality front, with gross non-performing assets (NPAs) falling to 1.36 per cent of gross advances from 1.40 per cent at the end of June last year. Net NPAs dropped 0.33 per cent from 0.43 per cent.
Total provisioning for bad loans and contingencies increased during the quarter despite fall in NPAs -- from Rs 2,613.66 crore to Rs 3,891.52 crore. Specific loan loss provisions for the quarter were at Rs 2,739.8 crore and general and other provisions at Rs 1,151.7 crore.
In the June quarter of last year, specific loan loss provisions had stood at Rs 2,248 crore and general and other provisions at Rs 365.7 crore.
This year, total provisions also included contingent provisions of approximately Rs 1,000 crore, the bank said.