HDFC Bank Q2 net profit rises 25% to Rs 6,638 cr

Private sector HDFC Bank Saturday reported a 24.7 percent rise in its consolidated net profit at Rs 6,638 crore for the three months ended September 2019, helped by healthy core income. The bank had registered a net profit of Rs 5,322.41 crore in the same quarter of the previous fiscal.

Total income on a consolidated basis rose to Rs 36,130.96 crore during the three months to September, against Rs 30,124.49 crore in the same period of the previous year, the bank said in a regulatory filing. Its advances grew 19.1 percent to Rs 9,47,440 crore during the reported quarter from Rs 7,95,563 crore a year earlier, the bank said.

On a standalone basis, its net profit stood at Rs 6,344.99 crore in the July-September period as against Rs 5,005.73 crore a year ago. Total income on a standalone basis reported at Rs 33,755 crore, against Rs 28,215.15 crore. The asset quality of the bank witnessed a slight deterioration as gross non-performing assets (NPAs) rose to 1.38 percent of gross advances at the end of September 2019, as against 1.33 percent at the end of the corresponding month of 2018.

In absolute value, gross bad loans (NPAs) during the quarter rose to Rs 12,508.15 crore from Rs 10,097.73 crore a year ago. Net NPAs were at 0.42 percent of net advances (Rs 3,790.95 crore), up from 0.43 per cent (Rs 3,028.24 crore).

The bank said it made provisions of Rs 2,700.68 crore for bad loans and contingencies for the second quarter, which was higher than Rs 1,819.96 crore parked aside for the same in the year-ago period. Total balance sheet size as of September 30, 2019, was Rs 13,25,072 crore as against Rs 11,69,898 crore a year earlier.

Its total deposits as of September 30, 2019, reported at Rs 10,21,615 crore, an increase of 22.6 percent over September 30, 2018. "The bank's continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 133 percent, well above the regulatory requirement," it said.

Total advances as of September 30, 2019, were at Rs 8,96,984 crore, an increase of 19.5 percent over September 30, 2018. The bank's distribution network comprised 5,314 banking outlets and 13,514 ATMs across 2,768 cities/towns at the end of September 2019, against 4,825 banking outlets and 13,018 ATMs across 2,718 cities/towns a year ago, the lender said in a statement.