HDFC Bank's Q2FY21 net profit rises over 18% (Lead)
Saturday - October 17, 2020 9:33 pm , Category : BUSINESS
Mumbai, Oct 17 (IANS) Lending major HDFC Bank on Saturday reported a 18.4 per cent increase in standalone net profit for the quarter ended September 30 of FY21 on year-on-year (YoY) basis.The bank's net profit for the second quarter of FY21 rose to Rs 7,513.1 crore on a YoY basis."While the previous quarter largely bore the brunt of the Covid-19 pandemic, some of the softness continued into the current quarter, leading to lower retail loan origination, use of debit and credit cards by customers, efficiency in collection efforts and waivers of certain fees," the bank said in a statement."As a result, fees or other incomes were lower by approximately Rs 800 crore. However, the loan and card momentum has improved over the previous quarter, thereby reducing the gap to less than half," it added.Besides, the bank's net interest income (interest earned less interest expended) for the quarter ended September 30 grew by 16.7 per cent to Rs 15,776.4 crore from Rs 13,515.0 crore for the corresponding period of the previous year."The bank's continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 153 per cent, well above the regulatory requirement," the statement said.As per the statement, the bank continues to hold provisions as on September 30, 2020 against the potential impact of Covid-19 based on the "information available at this point in time and the same are in excess of the RBI prescribed norms".The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 6,304 crore as on September 30, 2020."Total provisions (comprising specific, floating, contingent and general provisions) were 195 per cent of the reported gross NPAs or 154 per cent of proforma gross NPAs as on September 30, 2020," the statement said.In terms of the Q2FY21 consolidated financial results, the bank reported net profit of Rs 7,703 crore, up 16 per cent over the quarter ended September 30, 2019.Besides, consolidated advances grew by 14.9 per cent from Rs 947,440 crore as on September 30, 2019 to Rs 1,088,948 crore as on September 30, 2020.