HDFC Bank profit rises 5 pc to Rs 19,060 cr in Q1

NEW DELHI: HDFC Bank on Saturday reported a 5 per cent increase in standalone net profit to Rs 19,060 crore for the June quarter.

The country's biggest private sector lender had earned a net profit of Rs 18,155 crore in the year-ago period.

However, the total income of the bank in the quarter under review dropped to Rs 92,184 crore from Rs 99,200 crore in the same period a year ago, HDFC Bank said in a regulatory filing.

The lender's interest income increased to Rs 79,363 crore from Rs 77,470 crore in the same quarter a year ago.

During the period, operating profit of the bank declined to Rs 28,169 crore, as compared to Rs 35,734 crore in the same quarter a year ago.

Net interest income grew 7 per cent to Rs 33,530 crore from Rs 31,440 crore for the June quarter, it said.

Net interest margin was at 3.26 per cent on total assets, and 3 per cent based on interest earning assets.

The bank's asset quality exhibited improvement with gross non-performing assets (NPAs) declined to 1.17 per cent of gross advances at the end of the June quarter, from 1.4 per cent a year ago.

Similarly, net NPAs, or bad loans, declined to 0.41 per cent, as against 0.47 per cent in the year-ago period.

As a result, provisions and contingencies for bad loans declined massively to Rs 3,060 crore during the first quarter, as compared to Rs 14,442 crore in the same period a year ago.

Capital adequacy ratio of the bank moderated to 19.57 per cent from 19.88 per cent at the end of first quarter of the previous financial year.

The consolidated profit after tax of the HDFC Bank Group for the June quarter was Rs 19,245 crore as against Rs 16,258 crore in the same period a year ago, registering an 18 per cent growth.

The bank's consolidated net revenue was Rs 85,480 crore for the June quarter, it said.