HDFC Bank Q2 profit up 18.4 per cent, NII rises 16.7 per cent

As a result, fees/other income were lower by approximately Rs 800 crore.
HDFC Bank. (Photo | Reuters)
HDFC Bank. (Photo | Reuters)

NEW DELHI:  The country’s largest private sector lender HDFC Bank has reported a 18.4  per cent year-on-year growth in profit at Rs 7,513.11 crore for the September-ended quarter, driven by PPoP, NII and lower tax rate.

The profit in the year ago period stood at Rs 6,345 crore.

Total consolidated income during the quarter under review rose to Rs 38,438.47 crore from Rs 36,130.96 crore in July-September 2019, the bank said in a release. 

Net interest income, the difference between interest earned and interest expended, rose by 16.7 per cent year-on-year to Rs 15,776.4 crore in September quarter, driven by asset growth of 21.5 per cent and a core net interest margin for the quarter at 4.1 per cent, HDFC Bank said in its BSE filing.

The continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 153 percent, well above the regulatory requirement.

“While the previous quarter largely bore the burnt 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.  As a result, fees/other income 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,” the lender added. Gross non-performing assets (NPAs) of the bank fell to 1.08 per cent of the gross advances.

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