HDFC Bank Q2 Results: Lender reports 17.6% jump in net profit at Rs 8,834 cr; asset quality improves sequentially

An ET Now poll of analysts had projected the profit figure at Rs 8,810 crore.

HDFC Bank said its net interest income (NII) — the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors — rose 12.1 per cent YoY to Rs 17,684.40 crore for the quarter. NII stood at Rs 15,776.40 crore in the year-ago quarter.

ET NOW poll had forecast NII figure at Rs 17,528 crore.

Core net interest income (NIM) for the quarter came in at 4.1 per cent.

Provisions and contingencies for the quarter rose to Rs 3,924.70 crore compared with Rs 3,703.50 crore in the year-ago quarter. Total provisions for the quarter included Rs 1200 crore worth contingent provisions, the bank said. Provisions and contingencies at the end of June quarter stood at Rs 4830.84 crore.

Gross non-performing assets as percentage of gross advances came in at 1.35 per cent compared with 1.47 per cent in the June quarter and 1.37 per cent in the year-ago quarter. Excluding NPA in the agriculture segment, NPAs for the September quarter came in at 1.2 per cent.

The total credit cost ratio for the quarter stood at 1.3 per cent compared with 1.67 per cent in the June quarter and 1.41 per cent in the year-ago quarter.

Pre-operating profit rose 14.4 per cent YoY to Rs 1,5807.30 crore. Total advances grew 15.5 per cent to Rs 11,98,837 crore while deposits were up 14.4 per cent to Rs 14,06,343 crore.