HDFC Bank Q2 net up 27% to ₹6,345 crore

Lender’s retail loan growth slows

Private sector lender HDFC Bank on Saturday reported a net profit of ₹6,345 crore, for the quarter ended September 30, which is 26.8% higher than the same period of the previous year.

This was despite an increase in provisioning.

The growth in profit comes on the back of a 39.2% growth in other income to ₹5,588.7 crore mainly due to gain from sale of investments.

Revaluation of investment gains stood at ₹480.7 crore during the quarter compared with a ₹32.8-crore loss in the same period of the previous quarter.

Net interest income

Net interest income (interest earned less interest expended for the quarter) grew to ₹13,515 crore from ₹11,763.4 crore, driven by an average asset growth of 15% and a core net interest margin for the quarter of 4.2%, the bank said in a statement.

Provisions increased sharply to ₹2,700.7 crore during the quarter from ₹1,820 crore mainly due to an increase in loan loss provisioning which went up to ₹2,038 crore from ₹1,572.5 crore.

Bad loans also rose on a year-on-year basis with gross non-performing asset ratio at 1.38% of gross advances compared with 1.33% a year ago.

Gross NPA ratio at the end of previous quarter was 1.4%.

“The bank held floating provisions of ₹1,451 crore as on September 30, 2019,” the statement said.

CASA deposits

Deposits grew 22.6% year-on-year driven by current and savings account growth of 14.7% and fixed deposit growth of 28.3%. CASA deposits were 39.3% of the total deposits.

Advances grew by 19.5% mainly driven by corporate loan growth of 27.9%. Corporate loans are now 48% of the total book compared with 46% in the previous quarter.

Retail loan growth was 14.7%, which was 52% of the total loan book.

Growth in retail loans slowed down from the 16.5% reported in the previous quarter.

Year-on-year growth in auto loans was almost flat during the second quarter of the current financial year.

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