HDFC Bank Q2 Result, Profit grows 17.6%
HDFC Bank, the largest private sector lender in India, has reported standalone profit at Rs 8,834.31 crore for September 2021 quarter, a 17.6 percent higher compared the corresponding period last fiscal, driven by higher other income, and marginal increase in provisions. The sequential growth in profit was at 14.3 percent for the quarter.
Net interest income, the difference between interest earned and interest expended, increased 12.1 percent YoY to Rs 17,684.4 crore during the quarter, with healthy loan growth.
"Advances grew at 15.5 percent reaching new heights driven through relationship management, digital offering and breadth of products. Core net interest margin was at 4.1 percent," said HDFC Bank in its BSE filing.
The advances increased to Rs 11.98 lakh crore in Q2FY22 YoY and the same increased 4.4 percent, sequentially. Loan growth was supported by, "retail segment that registered 12.9 percent YoY growth and commercial & rural banking segment that grew 27.6 percent YoY during the quarter," said the bank, adding other wholesale loans grew by around 6 percent YoY.
Provisions and contingencies at Rs 3,924.66 crore for the September quarter included contingent provisions of Rs 1,200 crore, growing 6 percent over a year-ago period but declined 18.8 percent on sequential basis.
The bank said it held floating provisions of Rs 1,451 crore and contingent provisions of Rs 7,756 crore as of September 2021, and total provisions were 163 percent of the gross non-performing loans as of September 2021.
Provision coverage ratio improved further to 70.9 percent in the second quarter of FY22, from 67.9 percent in June quarter.
On the asset quality front, gross non-performing loans at 1.35 percent of gross advances as of September 2021 were higher compared to 1.47 percent in June 2021 quarter, while net non-performing assets at 0.4 percent for the quarter declined from 0.48 percent in previous quarter.
Pre-provision operating profit at Rs 15,807.3 crore in Q2 grew by 14.4 percent over the corresponding period of previous year, the slowest growth in 21 quarters.
HDFC Bank said other income (non-interest income) at Rs 7,400.8 crore in Q2FY22 grew by 21.5 percent year-on-year, as fees & commissions, which accounted for 67 percent of other income, jumped 25.5 percent to Rs 4,945.9 crore YoY.
Foreign exchange & derivatives revenue, and miscellaneous income (recoveries and dividend) grew by 55 percent to Rs 867 crore and 58.5 percent to Rs 912 crore YoY respectively, but gain on sale/revaluation of investments fell 33.5 percent to Rs 675.5 crore in the same period, it added.
During the quarter ended September 2021, the private sector lender purchased loans aggregating Rs 7,132 crore through the direct assignment route under the home loan arrangement with promoter Housing Development Finance Corporation.
HDFC Bank's Q1 net profit rises 16.1% YoY
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.
HDFC Bank reported 18.2 per cent up in Y-o-Y profit
HDFC Bank reported an 18.2 per cent on-year jump in standalone net profit to Rs 8,186.51 crore for the January-March quarter of FY21. The company had posted a profit of Rs 6,927.6 crore in the corresponding quarter of the previous year. Amid the second COVID-19 wave, the company informed that its board has considered it prudent to currently not propose a dividend for the financial year ended March 31, 2021. India’s largest private sector lender’s Net Interest Income (NII), the difference between interest earned through lending and interest paid to depositors, witnessed a 12.6 per cent on-year rise to Rs 17,120 crore in the quarter under review, as compared to Rs 15,204 crore in the same period last year.
The Bank’s net revenues (net interest income plus other income) rose to Rs 24,713 crore in the fourth quarter of FY21 from Rs 21,236 crore in the previous year.
HDFC Bank Q4 results:
HDFC Bank maintained a healthy liquidity coverage ratio at 138 per cent, which was well above the regulatory requirements.
Operating expenses in the January-March 2021 quarter, stood at Rs 9,181.3 crore, a jump of 10.9 per cent over Rs 8,277.8 crore during the corresponding quarter of the previous year.
The cost-to-income ratio for the quarter ended March 31, 2021, was at 37.2 per cent as compared to 39 per cent in the year-ago period.
Other income (non-interest revenue) came in at Rs 7,593.9 crore, which was 30.7 per cent of net revenues in the fourth quarter of FY21 and grew by 25.9 per cent over Rs 6,032.6 crore in the quarter ended March 31, 2020.
Total deposits of the HDFC Bank stood at Rs 13 lakh crore, a rise of 16.3 per cent over March 31, 2020. CASA deposits increased by 27 per cent with savings account deposits at Rs 4.03 lakh crore and current account deposits at Rs 2.12 lakh crore.
HDFC Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines stood at 18.8 per cent in the March quarter of 2021 (against 18.5 per cent as on March 31, 2020), as against a regulatory requirement of 11.075 per cent.
Gros non-performing assets were at 1.32 per cent of gross advances as on March 31, 2021, as against 1.38 per cent as on December 31, 2020, and 1.26 as on March 31, 2020.
HDFC Bank’s distribution network was at 5,608 branches and 16,087 ATMs/ cash deposit and withdrawal machines (CDMs) across 2,902 cities or towns.
HDFC Bank Q3 Results: Net Profit Jumps 18%
HDFC Bank, the country's largest private lender, reported a net profit of Rs. 8758.3 crore on Saturday, January 16, marking an 18.1 rise in the October-December quarter. The bank's total income increased to Rs. 37,522 crore on a standalone basis as compared to Rs. 36,039 crore in the year-ago period. The growth in the third quarter was mostly led by non-interest income as well as pre-provision operating profit with improved asset quality performance.
The asset quality of the bank improved during the October-December quarter as the gross non-performing assets (NPA) ratio stood at 0.81 per cent of the total assets as against 1.42 per cent in the year-ago period and 1.08 per cent at the end of the preceding September quarter, according to HDFC bank.
HDFC Bank's net revenues or net interest income plus other income grew to Rs. 23,760.8 crore in the third quarter of the current financial year from Rs. 20,842.2 crore in the year-ago period.
HDFC Bank's net interest income - the difference between interest earned and interest expended - grew by 15.1 percent to Rs. 16,317.6 crore in the third quarter, driven by advances growth of 15.6 percent, and a core net interest margin for the quarter of 4.2 percent, as compared to Rs.14,172.9 crore in the year-ago period.
The operating expenses for the third quarter were Rs. 8,574.8 crore, an increase of 8.6 per cent over Rs. 7,896.8 crore during the corresponding quarter of 2019. The cost-to-income ratio for the quarter was at 36.1 per cent as against 37.9 per cent for the corresponding quarter of 2019.
The restructuring under the Reserve Bank of India resolution framework for COVID-19 was approximately 0.5 per cent of advances.
The total credit cost ratio was at 1.25 per cent, declining from 1.41 per cent in the previous quarter, and from 1.29 per cent in the corresponding quarter from the year-ago period, said the bank.
The non-interest income or other income was at Rs. 7,443.2 crore - 31.3 per cent of the net revenues, for the third quarter of the financial year, as against Rs. 6,669.3 crore in the corresponding quarter of 2019, driven by fees and commissions and sale or revaluation of investments.
The bank said that it continues to hold provisions as of December 31, 2020, against the potential impact of COVID-19 in the excess of the RBI prescribed norms.
In the second quarter of the current financial year, HDFC Bank reported a net profit of Rs. 7,513.11 crore, marking an increase of 18.41 per cent as compared to the corresponding period a year ago.
WhatsApp Pay goes live in India with four banks
WhatsApp Pay on Wednesday announced it is now live with State Bank of India, HDFC Bank, ICICI Bank and Axis Bank for its up to 20 million users in India. After two years of waiting, Facebook-owned WhatsApp payment service received approval from the National Payments Corporation of India (NPCI) in November to go live on Unified Payment Interface (UPI) with over 160 supported banks.
WhatsApp can expand its UPI user base in a graded manner starting with a maximum registered user base of 20 million. "UPI is a transformative service and we jointly have the opportunity to bring the benefits of our digital economy and financial inclusion to a large number of users who have not had full access to them before," Abhijit Bose, Head of WhatsApp, India, said during the Facebook 'Fuel for India' virtual event.
The peer-to-peer (P2P) payment feature is available now in 10 Indian regional language versions of WhatsApp.
"We introduced banking services on WhatsApp in April. Over two million users have adopted banking services on WhatsApp in this short span. Now with WhatsApp Payments, there is a unique opportunity to scale essential financial services to people all over the country with ease," said Bijith Bhaskar, Head - Digital Channels & Partnership, ICICI Bank.
According to a latest report by Bengaluru-based research firm RedSeer, digital payments in India are expected to reach $94 trillion by the financial year 2025.
"We're excited and privileged to partner with State Bank of India, ICICI Bank, HDFC Bank and AXIS Bank to bring simple and secure digital payments to WhatsApp users across India," Bose said in a statement.
SBI now offers UPI services through the WhatsApp Payments, bringing the convenience of easy and instant mobile based payments.
Parag Rao, Country Head-Payments Business, Consumer Finance, Digital Banking & Marketing, HDFC Bank said that the partnership with WhatsApp Pay is yet another important step toward achieving financial inclusion and making affordable financial services available to Indians.
"Such partnerships will further fuel the economic growth and development of the nation," Rao added.
WhatsApp had said earlier that the payments feature is designed with a strong set of security and privacy principles, including entering a personal UPI PIN for each payment.
In India, the WhatsApp payment service competes against major players like Paytm, Google Pay and PhonePe, among others.
HDFC Bank reports 18.4% jump in Q2 profit
HDFC Bank, the country's largest private sector lender, reported a 18.4 percent year-on-year (y-o-y) growth in profit at Rs 7,513.11 crore for the September quarter, driven by PPoP, NII and lower tax rate.
The profit in the year-ago period was at Rs 6,345 crore.
Net interest income, the difference between interest earned and interest expended, increased by 16.7 percent y-o-y to Rs 15,776.4 crore in the September quarter, driven by asset growth of 21.5 percent and a core net interest margin for the quarter at 4.1 percent, HDFC Bank said in its BSE filing.
The continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 153 percent, well above the regulatory requirement.
On October 5, HDFC Bank said it registered a 15.8 percent y-o-y growth in advances approximately of Rs 10.37 lakh crore during the September quarter, while deposits aggregated to approximately Rs 12.29 lakh crore as increased around 20.3 percent y-o-y.
Asset quality has improved sequentially against expectations of marginal increase, due to the Supreme Court order on NPA classification.
Gross non-performing assets as a percentage of gross advances fell 28 bps q-o-q to 1.08 percent at the end of the September quarter, while net NPAs declined 16 bps q-o-q to 0.17 percent in Q2FY21.
However, "if the bank had classified borrower accounts as NPAs after August 31, 2020, and also adopted an early recognition of NPAs using its analytical models (proforma approach), the proforma gross NPA and net NPA ratio would have been 1.37 percent and 0.35 percent. Pending disposal of the case, the bank, as a matter of prudence, has made a contingent provision in respect of these accounts," HDFC Bank said.
Provisions and contingencies, as expected, increased to Rs 3,703.5 crore in Q2FY21, higher by 37.1 percent compared to Rs 2,700.68 crore, while the same fell 4.8 percent compared to the year-ago period.
"Total provisions include contingent provisions of approximately Rs 2,300 crore for proforma NPAs as well as additional contingent provisions to make the balance sheet more resilient," the bank said.
Non-interest income in Q2FY21 grew by 9 percent to Rs 6,092.45 crore, impacted by lower retail loan origination, use of debit and credit cards by customers, efficiency in collection efforts and waivers of certain fees, HDFC Bank said.
Pre-provision operating profit during the quarter increased 18.1 percent to Rs 13,813.78 crore, compared to the same period last year.
During the quarter ended September 2020, HDFC Bank said it purchased loans aggregating Rs 3,026 crore through the direct assignment route under the home loan arrangement with Housing Development Finance Corporation (HDFC).
Meanwhile, the bank has approved the appointment of Sashidhar Jagdishan as an Additional Director and as the Managing Director and Chief Executive Officer, subject to the approval of the shareholders of the bank, for a period of three years from October 27, 2020.
Private bank employee arrested by CBI for accepting bribe
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