HDFC Bank saw its net profit grow by 18.2 per cent year-on-year to Rs 4,601.44 crore in the first quarter of the ongoing financial year, meeting expectations. The bank had posted a net profit of 3,893.84 crore during the quarter ended June 30, 2017, according to a regulatory filing by the bank.
The total income of HDFC Bank grew 18.8 per cent to Rs 26,367 crore in the June quarter of the current fiscal as opposed to the Rs 22,185.4 crore for the corresponding quarter last fiscal. Net revenues (net interest income plus other income) increased to Rs 14,631.60 crore from Rs 12,887.4 crore earlier.
The net interest income (interest earned less interest expended) for the quarter grew by 15.4 per cent to Rs 10,813.60 crore, from Rs 9,370.70 crore earlier, driven by asset growth and a net interest margin of 4.2 per cent for the quarter, HDFC Bank said.
The private lender also saw its operating expenses grow in the quarter under consideration by 11.5 per cent to Rs 5,983.9 crore from Rs 5,367.5 crore registered during the quarter ended June 30, 2017. The core cost-to-income ratio for the quarter was at 40.1 per cent as against 42.7 per cent for the corresponding quarter last year.
In value terms, the gross NPAs of the bank stood at Rs 10,097.73 crore by end of September quarter, compared to Rs 7,702.84 crore.
The net NPAs or bad loans, however, fell to 0.40 per cent of the net loans by end of second quarter against 0.43 per cent. The absolute value of net NPAs was at Rs 3,028.24 crore as against Rs 2,596.83 crore.
The provisions and contingencies for the quarter ended September 30, 2018 were Rs 1,820 crore as against Rs 1,476.20 crore as on September 30, 2017.
The lender said it made preferential allotment of more than 3.90 crore equity shares to its parent Housing Development Finance Corporation (HDFC Ltd) at a price of Rs 2,174.09 crore on July 17 aggregating to Rs 8,500 crore.