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
|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|
|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%|