NEW DELHI: The country’s second largest private sector bank — HDFC Bank — posted a strong Rs 10,342.2 crore net profit on a standalone basis in the quarter- ended December 31, 2021, registering a growth of 18.1%. During the quarter, the bank’s net revenues (net interest income plus other income) increased by 12.1% to Rs 26,627 crore from Rs 23,760.8 crore in the same quarter previous year.
Net interest income (interest earned less interest expended) for the quarter grew by 13.0% to Rs 18,443.5 crore from Rs 16,317.6 crore for the quarter ended Dec 31, 2020. Core net interest margin, which measures net interest income as a percentage of interest-bearing assets, was at 4.1% during the quarter compared to 4.2% a year ago. In the September quarter also, the bank reported 4.1% net interest margin.
The bank showed improvement in asset quality during the quarter as gross non-performing assets were at 1.26% of gross advances as on December 31, 2021 as against 1.35% as on September 30, 2021 and 1.38% as on December 31, 2020. Net non-performing assets were at 0.37% of net advances as on December 31, 2021 compared to 0.40% at the end of December 2020.
Provisions and contingencies for the quarter were Rs 2,994 crore as against total provisions of Rs 3,414.1 crore for the quarter ended December 31, 2020. Total provisions for the current quarter included contingent provisions of approximately Rs 900 crore.
Total advances grew 16.5% to Rs 1,260,863 crore. Retail loans grew by 13.3%, commercial and rural banking loans grew by 29.4% and corporate and other wholesale loans grew by 7.5%. Overseas advances constituted 3.4% of total advances.
The bank in a statement said it could increase its loan portfolio through relationship management, digital offering and breadth of products. Total deposits as of Dec 31, 2021 were Rs 1,445,918 cr, up 13.8% from year-ago quarter.