NEW DELHI: Asset quality of HDFC Bank deteriorated in the June quarter of the current financial even as the bank posted an underwhelming set of numbers during the quarter.
The bank posted an 18% growth in net revenues (net interest income plus other income) to Rs 23,297.5 crore for the quarter ended 30 June 2021 from Rs 19,740.7 crore in the same quarter previous year.
Net interest income (interest earned less interest expended) for the quarter grew at 14% to Rs 17,009.0 crore from Rs 15,665.4 crore for the quarter ended 30 June 2020.
The net profit (profit after tax) grew 16.1% to Rs 7,729.6 crore. On a sequential basis, the bank’s net profit showed a drop of 5.6%.The core net interest margin of the bank was 4.1% during the quarter, which is an 18-quarter low.
According to a statement by the bank, during the quarter, the country was hit by a second wave of Covid-19 and business activities remained curtailed for almost two thirds of the quarter.
“These disruptions led to a decrease in retail loan originations, sale of third-party products, card spends and efficiency in collection efforts. The lower business volumes, coupled with higher slippages, resulted in lower revenues, as well as an enhanced level of provisioning,” said the bank in a press statement.
The bank reported a 24% year-on-year jump in gross NPA at Rs 1.71 lakh crore, and 67% jump in net NPA to Rs 58,958 crore during the quarter.
Gross NPA at the end of the June quarter was 1.47% of total advances, 11 basis point higher than the same quarter in previous year. GNPA was 1.32% in the fourth quarter of 2020-21.
Net NPA of the bank during the quarter was 0.48% of the total advances, 15 basis points higher than during the same period previous quarter.
Total advances grew at 14.4% to Rs 1,147,652 crore, while deposits showed a 13.2% jump to Rs 1,345,829 crore. CASA deposits grew by 28.1% with savings account deposits at Rs 426,132 crore and current account deposits at Rs 185,669 crore.