Skip to main content

HDFC Bank Q1 profit jumps 20% to Rs 6,658.6 crore, loan growth lifts NII 18%

 Date – 18/7/2020

Source - Moneycontrol 

Net interest income in Q1 FY21 climbed 17.8 percent year-on-year to Rs 15,665.42 crore supported by healthy loan growth of 21 percent.

 


India's largest private lender HDFC Bank has reported a 19.6 percent year-on-year growth in standalone profit for the quarter ended June 2020, led by lower tax cost and NII. However, elevated provisions, and lower other income due to slowdown in economic activity limited profit growth.

Profit during the quarter increased sharply to Rs 6,658.62 crore, compared to Rs 5,568.16 crore in the same period last year.

Net interest income in Q1 FY21 climbed 17.8 percent year-on-year to Rs 15,665.42 crore supported by healthy loan growth of 21 percent in the quarter and deposits growth of 24.6 percent, said the bank in its BSE filing.

Net interest margin for the quarter stood at 4.3 percent.

The bank said CASA deposits grew by 26 percent and time deposits increased by 23.7 percent YoY, resulting in CASA deposits comprising 40.1 percent of total deposits as of June 2020. "The bank's continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 140 percent, well above the regulatory requirement."

Provisions and contingencies for the quarter stood at Rs 3,891.52 crore, increasing 48.9 percent compared to the corresponding period last fiscal and 2.8 percent on a sequential basis.

"The bank holds provisions as on June 30, 2020, against the potential impact of COVID-19 based on the information available at this point in time. The provisions held by the Bank are in excess of the RBI prescribed norms," HDFC Bank said.

Add caption

It held floating provisions of Rs 1,451 crore and contingent provisions of Rs 4,002 crore as on June 2020, while total provisions (comprising specific, floating, contingent and general provisions) were 149 percent of the gross non-performing loans, the bank added.

Asset quality weakened on expected lines during the quarter as gross non-performing assets (NPA) climbed sequentially to 1.36 percent (from 1.26 percent), and excluding agricultural segment, gross NPAs increased to 1.2 percent from 1.1 percent QoQ. However, net NPAs dropped to 0.33 percent during the June quarter, from 0.36 percent during the March quarter.

Pro-provision operating profit (PPoP) jumped 15.1 percent to Rs 12,829.27 crore compared to the year-ago quarter as operating expenses declined down 2.9 percent YoY primarily due to lower loan origination and sales volumes.

"Earnings and PPoP were 15 percent and 5 percent over our estimates. Higher-than-expected operational profit arose as operating expenses were contained which reflects high modularity of the business (a positive surprise)," said Rajiv Mehta, Lead Analyst – Institutional Equities at YES Securities.

"Accretion in core capital ratio (CET-1 at 16.7 percent) was on the back of strong profitability and lower risk intensity of growth. Such resilient performance is highly comforting. However, we would be closely monitoring moratorium data, management's recent assessment of COVID impact and management transition," he added.

The bank said its cost-to-income ratio for the quarter stood at 35 percent as against 39 percent in the corresponding quarter ended June 30, 2019.

However, non-interest income fell considerably to Rs 4,075.31 crore in the quarter ended June 2020, down 18 percent YoY largely due to lower fees & commissions (dipped 37 percent).

"The continued slowdown in economic activity has led to a decrease in retail loan origination, sale 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," said HDFC Bank.


Labels:

Comments

Post a Comment

Popular posts from this blog

Ashoka Buildcon share price up 4% on bagging 2 NHAI projects

The share touched its 52-week high Rs 127.90 and 52-week low Rs 37.00 on 23 September, 2019 and 03 April, 2020, respectively. Ashoka Buildcon share price added over 4 percent in early trade on September 8 after the company emerged as the lowest bidder (L-1) for the two NHAI projects. The aggregate quoted value of the projects is Rs 1,390 crore. The company had submitted bids to National Highway Authority of India (NHAI) for the project of four laning of Arra h to Pararia section of NH-319(Old NH-30) in the State of Bihar under Bharatmala pariyojana Phase -1 on EPC Mode (Package-I) and Four laning of Pararia to Mohania section of NH-319(Old NH-30) in Bihar under Bharatmala Pariyojana Phase-I on EPC Mode (Package II). At 09:23 hrs Ashoka Buildcon was quoting at Rs 70.60, up Rs 2.40, or 3.52 percent on the BSE. The share touched its 52-week high Rs 127.90 and 52-week low Rs 37.00 on 23 September, 2019 and 03 April, 2020, respectively. Currently, it is trading 44.8 percen...
Post a Comment
Read more

Reliance Jio Q3 results: Profit grows to Rs 3,489 crore; ARPU rises to Rs 151

  The average revenue per user (ARPU) during the quarter came at Rs 151 per subscriber per month as against Rs 145 per subscriber per month in the September quarter. Reliance Jio, the telecommunications arm of Jio Platforms, on January 22 posted a net profit of Rs 3,489 crore for the quarter ended December 31, 2020. The profit was higher than the street expectations as analysts in a CNBC-TV18 poll had estimated the number at Rs 3,200 crore. Jio's net profit grew 15.5 percent QoQ as in the September quarter of FY21, its profit was Rs 3,020 crore. The average revenue per user (ARPU) during the quarter came at Rs 151 per subscriber per month as against Rs 145 per subscriber per month in the September quarter. A CNBC-TV18 poll had estimated ARPU at Rs 148.2. Revenue, including access revenues for the quarter, was Rs 22,858 crore ($3.1 billion), up 5.3 percent QoQ. A CNBC-TV18 poll had estimated revenue to the tune of Rs 18,165 crore. EBITDA for the quarter stood at Rs 8,483 crore ...
Post a Comment
Read more

Info Edge share price gains after Q1 profit surges 149% YoY

The company reported consolidated net profit at Rs 93.66 crore which surged 149 percent as compared to Q1FY20 when it reported loss of Rs 190.91 crore. Info Edge share price gained over 2 percent in the morning trade on September 8, a day after the company declared its Q1 results. The company reported consolidated net profit at Rs 93.66 crore, which surged 149 percent, as compared to Q1FY20, when it reported loss of Rs 190.91 crore. The net profit margin in Q1FY21 came in at 32.86 percent which jumped by 92.58 percent YoY. Consolidated net revenue in Q1FY21 stood at Rs 285 crore, which fell by 10.85 percent YoY from Rs 319.7 crore in Q1FY20. Its EBITDA stood at Rs 104 crore in Q1FY21 which jumped 16.62 percent YoY. The stock price gained 62 percent in the last 1 year and was trading at Rs 3,370.35, up Rs 78.45, or 2.38 percent. It has touched an intraday high of Rs 3,400.00 and an intraday low of Rs 3,363.05. According to Moneycontrol SWOT Analysis powered by Trendlyne, F...
Post a Comment
Read more