HDFC Bank quarterly profits jump by 18%

  • HDFC Bank quarterly profits jump by 18%

HDFC Bank quarterly profits jump by 18%

It was the main organization among banks to deliver quarterly outcomes.

The bank reported an 18.1 per cent on-year growth in net profit at Rs 8,758 crore for the quarter ended December 31, 2021. The CNBC-TV18 survey had assessed a benefit of Rs 8,264.8 crore.

Provisions and contingencies for the quarter ended December 2020 were Rs 3,414.1 crore (consisting of specific loan loss provisions of Rs 691.2 crore and general and other provisions of Rs 2,722.9 crore) as against Rs 3,043.6 crore (consisting of specific loan loss provisions of Rs 2,883.6 crore and general and other provisions of Rs 159.9 crore) for the quarter ended December 2019. Similarly, domestic wholesale loans also grew by 25 per cent.

Net revenues, the sum of NII and other income, grew to Rs 23,760.8 crore for in Q3 FY21, up 14 per cent from Rs 20,842.2 crore in Q3 FY20.

The Bank held floating provisions of ₹ 1,451 crore and contingent provisions of ₹ 8,656 crore as on December 31, 2020.

Pre-provision operating profit rose 17.3% year-on-year to ₹15,186.02 crore for the quarter ended December 2020. It was reported at Rs 3,043 crore in the year-ago period.

"The expense to-pay proportion for December quarter 2020 was at 36.1 percent as against 37.9 percent in the relating time frame", HDFC Bank said. Its CASA ratio stood at around 43% compared to 39.5% at the end of December 2019 and 41.6% as on September 2020.

Total advances as of December 31, 2020, were Rs 1,082,324 crore, an increase of 15.6 per cent over December 31, 2019.

All out arrangements for the current quarter included unforeseen arrangements of roughly Rs 2,400 crore for proforma NPA, said the bank.

The Gross and Net non-performing assets were at 0.81% of gross advances and 0.09% of net advances as on December 31, 2020 respectively. The domestic brokerage firm said that HDFC Bank has delivered strong business growth as the economy continues to recover from the COVID-19 pandemic shock.

The Honourable Supreme Court of India, in a public interest litigation (Gajendra Sharma Vs Union of India & Anr), vide an interim order dated September 3, 2020, directed that accounts which were not declared NPA till August 31, 2020 shall not be declared as such until further orders. The four components of other income for the quarter ended December 31, 2020 were - fees and commissions of ₹4,974.9 crore, foreign exchange and derivatives revenue of ₹562.2 crore, gain on sale or revaluation of investments of ₹1,109 crore and miscellaneous income of ₹797.1 crore.

India's most valuable bank by market capitalization is the first lender to report third-quarter results.