HDFC reports 19.6% jump in Q1; states uncertain future due to Coronavirus
Private lender HDFC Bank on Saturday reported 19.6% rise in its first quarter net profits that concluded on June 30 (Q1 FY21). The profits of Rs 6,659 crore were driven by a three-fold jump in treasury gains.
In its regulatory filing, the bank said that its income rose to Rs 34,453.28 crore in June quarter FY21 from 32,361.84 crore for the same period last year. It added that its gross Non-Performing Assets (NPA) improved as it fell to 1.36% of the gross advances in this June quarter from the previous year’s 1.40%. Similarly, its net NPA ratio was also down 10 bps to 0.33% in the June quarter-2021.
The private lender in its statement said “For all such accounts where the moratorium is granted, the asset classification shall remain stand still during the moratorium period (i.e. the number of days past-due shall exclude the moratorium period for the purposes of determining whether an asset is non-performing).”
It added, “The provisions held by the bank are in excess of the RBI prescribed norms.” The bank further said that its total provisions stood at Rs 3,891 crore, up by 49% from the same period last year.
The bank stated that its current and saving account (CASA) deposits were up by 26% with savings deposits at Rs 3.27 trillion and current deposits at 1.5 trillion.
However, the bank has also expressed its anxiety and said that the future remains bleak due to the pandemic –influenced economic activities and the financial-behavioural change in the people’s approach.