HDFC Bank second quarter net profit increases 18.1% to Rs 9,096cr thanks to lower interest charges and stable provisioning
HDFC Bank reported 7.8% year-over-year growth in total consolidated revenue in the September 21 quarter at Rs41,436cr. Revenue also increased 6.43% on a sequential basis. In terms of sector turnover, treasury income increased 6.8% to Rs 8,650cr, retail banking up 1.9% to Rs28,214cr, corporate banking up 12, 6% to Rs 15,663cr and other transactions up 11% to Rs 8,106cr.
In terms of operating profit, HDFC Bank recorded a growth of 15.13% year-on-year to Rs17,036cr. In terms of divisions, cash segment profits increased 20.4% to Rs 2,317cr, retail banking profits down -21.8% to Rs 2,077cr, corporate banking profits were 68% at Rs 5813cr. The decline in retail banking profits is largely due to an increase in the provisioning of the NPA.
Net Interest Income (NII) for the quarter increased 12.1% to Rs17,684cr. While advances increased 15.5%, basic NIMs were slightly lower at 4.1%. Fees and commissions for the quarter increased 25% to almost Rs 5,000 in the quarter. The total cost of credit ratio fell from 1.67% to 1.30% on lower rates. CASA deposits grew 28.7% year-on-year and now represent 46.8% of total deposits. Credit growth was driven by rural and commercial credit, followed by retail trade.
Profit after tax (PAT) for the September 21 quarter rose 18.09% to Rs 9,096. While provisions were flat and interest charges were down, gross NPA also fell sequentially by 12 basis points at 1.35%. As a result, PAT margins turned out to be strong at 21.95% compared to 20.04% in the September 20 quarter and 20.35% in the sequential June 21 quarter.
September 21 financial highlights compared year-over-year and sequentially
| HDFC Bank | |||||
| Rs in crore | Sep-21 | Sep 20 | YEAR | June-21 | QOQ |
| Total income | 41,436 | 38,438 | 7.80% | 38 934 | 6.43% |
| Operating profit | 17,036 | ₹ 14,798 | 15.13% | 16,008 | 6.42% |
| Net profit | 9096 | ₹ 7,703 | 18.09% | 7922 | 14.82% |
| Diluted EPS | 16.30 | ₹ 14.00 | ₹ 14.30 | ||
| Operating margins | 41.11% | 38.50% | 41.12% | ||
| Net margins | 21.95% | 20.04% | 20.35% | ||
| Gross NPA ratio | 1.35% | 1.08% | 1.47% | ||
| Net NPA ratio | 0.40% | 0.17% | 0.48% | ||
| Return on assets | 0.50% | 0.48% | 0.45% | ||
| Capital adequacy | 20.00% | 19.10% | 19.10% |
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