HDFC Bank reported a net profit of Rs 7,730 crore in the second quarter (Q1) ended June 30, 2021, up by 16.1% year-on-year (YoY) as compared to Rs 6,659 crore in the same quarter last financial year 2020-21 (FY21). The figure was lower than ET Now poll of Rs 7,900 crore.
Net interest income for the quarter under review was up 18% to Rs 17,009 crore as compared to Rs 15,665.4 crore in Q2 FY21 driven by advances growth of 14.4%, and a core net interest margin of 4.1%.
India's largest private lender reported a total income of Rs 36771.47 crore during the June quarter against Rs 34,453.28 crore last year. The bank also recommended a dividend of Rs 6.50 per share in the board meeting held on Saturday.
Gross non-performing assets (NPAs) or bad loans rose sharply 13% quarter-on-quarter (QoQ) to Rs 17,098 crore as compared to Rs 15,086 crore in January-March 2021 quarter.
Provisions and contingencies for the quarter ended June 2021 quarter were Rs 4,830.8 crore as against Rs 3,891.5 crore for the quarter ended June 30, 2020.
"The country was hit by a second wave of COVID-19, with a significant surge in cases following the discovery of mutant coronavirus strains. While there was an improvement towards the end, business activities remained curtailed for almost two-thirds of the quarter. These disruptions led to a decrease in retail loan origination, sale of third party products, card spends and efficiency in collection efforts. The lower business volumes, coupled with higher slippages, resulted in lower revenues, as well as an enhanced level of provisioning," said HDFC Bank in a statement.
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