HDFC Bank’s Q1FY21 net profit rises by 19.6% to Rs 6,658.6 crore | Companies News

Mumbai: The HDFC Bank on Saturday (July 18, 2020) said that its net profit rose to Rs 6,658.6 crore for the quarter ended on June 30, 2020, which is an increase of 19.6% over the quarter ended June 30, 2019.

The Bank’s net revenues (net interest income plus other income) grew to Rs 19,740.7 crore for the Q1FY21 from Rs 18,264.5 for the quarter ended June 30, 2019.

The Net interest income (interest earned less interest expended) for the quarter ended June 30, 2020, grew by 17.8% to Rs 15,665.4 crore from Rs 13,294.3 crore for the quarter ended June 30, 2019, driven by growth in advances of 20.9%, and growth in deposits of 24.6%.

The net interest margin for the quarter was at 4.3%.

HDFC said that the continued slowdown in economic activity has led to a decrease in retail loan origination, sale of third party products, use of credit and debit cards by customers, efficiency in collection efforts and waivers of certain fees. The decrease resulted in fees/other income lowering by approximately Rs 2,000 crore.

Other income (non-interest revenue) at Rs 4,075.3 crore was 20.6% of the net revenues for the quarter ended June 30, 2020, as compared to Rs 4,970.3 crore in the corresponding quarter ended June 30, 2019.

Provisions and contingencies for the Q1FY21 were Rs 3,891.5 crore as against Rs 2,613.7 crore for the quarter ended June 30, 2019. Total provisions for the current quarter included contingent provisions of approximately Rs 1,000 crore.

The Core Credit Cost ratio was 1.08%, as compared to 0.77% in the quarter ending March 31, 2020, and 1.07% in the quarter ending June 30, 2019

Operating expenses for the quarter were Rs 6,911.5 crore, a decrease of 2.9% over Rs 7,117.3 crore during the corresponding quarter of 2019.

The cost-to-income ratio for the quarter was at 35.0% as against 39.0% on June 30, 2019.

“Operating expenses were lower primarily due to lower loan origination and sales volumes,” said HDFC.

Pre-provision Operating Profit at ₹ 12,829.3 crore increased by 15.1% over the corresponding quarter in 2019.

HDFC stated that their Profit before tax for the quarter ended June 30, 2020, was at ₹ 8,937.8 crore.

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