HDFC BANK

 HDFC Bank, the country's largest private sector lender, reported a 18.4  percent year-on-year growth in profit at Rs 7,513.11 crore for the September-ended 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 year-on-year to Rs 15,776.4 crore in 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 year-on-year growth in advances approximately of Rs 10.37 lakh crore during September quarter, while deposits aggregated to approximately Rs 12.29 lakh crore as of September quarter 2020 increased around 20.3 percent YoY.

Asset quality has improved sequentially against expectations of marginal increase, due to Supreme Court order on NPA classification. Gross non-performing assets as a percentage of gross advances fell 28 bps QoQ to 1.08 percent at the end of September quarter 2020, while net NPAs declined 16 bps QoQ to 0.17 percent in Q2FY21.

However, "if the bank had classified borrower accounts as NPA after August 31, 2020 and also adopted an early recognition of NPA using its analytical models (proforma approach), the proforma gross NPA and net NPA ratio would have been 1.37 percent and 0.35 percent as on September 2020. 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 year-ago period.

"Total provisions includes contingent provisions of approximately Rs 2,300 crore for proforma NPA 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 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).