Net earnings of the country’s largest private bank, HDFC Bank, increased 18.4 percent to Rs 7,513.1 crore for the second quarter ending September 2020 (Q2Fy21) due to substantial growth in interest earnings. and other income.
It had posted a net profit (profit after tax (PAT)) of Rs 6,344.9 crore for the quarter ended September 2019 (Q2FY20). Sequentially, it had posted a net profit of Rs 6,658.6 crore in the first quarter ending in June 2020 (Q1Fy21).
On Friday (October 16, 2020), the bank’s shares closed 2.55 percent higher at Rs 1,199 per share on the BSE.
Net interest income (NII) grew 16.7 percent year on year (year on year), from Rs 13,515 crore in Q2FY20 to Rs 15,774.4 crore in Q2FY21. Other income, which includes fees and commissions, grew 27.9 percent to reach Rs 6,092 crore in the second quarter of fiscal 21.
Provisions (taking into account non-performing assets, or NPA) and contingencies increased to Rs 3,703.5 crore in Q2FY21, from Rs 2,700.6 crore in Q2FY20.
Total provisions for the current quarter include contingent provisions of approximately Rs 2,300 crore for NPA and additional contingent provisions to make the balance more resilient, the bank said in a statement.
The bank’s asset quality improved during the fourth quarter. Gross NPAs were down to 1.08 percent in the second quarter of fiscal 21, from 1.38 percent in the second quarter of fiscal 2020. GNPAs were at 1.36 percent at the end of the first quarter. of fiscal year 21.
The net NPA was at 0.17% in September 2020, down from 0.42% in September 2019. Their net NPA was at 0.33% in June 2020 (Q1Fy21).
Total deposits increased 20.3 percent to 12.29.310 crore and advances grew 15.8 percent year-on-year to reach 10.38.335 crore as of September 2020.
The capital adequacy ratio stood at 19.1 percent as of September 30, with Tier I at 17 percent.
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