Private sector lender HDFC Bank reported on 17th April 2021 an 18.2 per cent year-on-year rise in net profit to ₹8,186.51 crore for the fourth quarter ended March 31, 2021. The Net Interest Income (NII) rose 12.6% to ₹17,120 crore in this March quarter. It was ₹15,204 crore in the quarter ended 31 March, 2020.
The net profit had stood at ₹6,927.69 crore in the fourth quarter of 2019-20. The bank’s net profit for full 2020-21 fiscal rose 18.5 per cent to ₹31,116.5 crore from ₹26,257.32 crore a year ago.
On on a sequential basis, however, HDFC Bank’s net profit fell 6.5 per cent from ₹8,758.29 crore in the October-December 2020 period.
The net revenue increased 16.4 per cent to ₹ 24,714.1 crore during the reporting quarter from ₹ 21,236.6 crore a year ago. The net interest income rose 12.6 per cent to ₹17,120.2 crore in Q4 (₹15,204.1 crore). This was driven by the 14 per cent growth in advances, and a core net interest margin of 4.2 per cent.
‘Other Income’ jumped 25.9 per cent to ₹7,593.9 crore in the fourth quarter from ₹6,032.6 crore in the corresponding period ended March 31, 2020.
Provisions and contingencies for the quarter ended March 31 increased 24 per cent to ₹4,693.7 crore in the fourth quarter (₹3,784.5 crore).
“The bank also continues to hold provisions as on March 31, 2021 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,” HDFC Bank said in a statement on Saturday.
It held floating provisions of ₹1,451 crore and contingent provisions of ₹5,861 crore as on March 31, 2021. Total provisions (comprising specific, floating, contingent and general provisions) were 153 per cent of the gross non-performing loans as on March 31, 2021.
The gross non-performing assets were at ₹15,086 crore, or 1.32 per cent of gross advances, as on March 31, 2021, as against 1.38 per cent (proforma approach) as on December 31, 2020, and 1.26 per cent as on March 31, 2020. Net non-performing assets were at 0.4 per cent of net advances as on March 31, 2021 versus 0.36 per cent a year ago. The bank’s total Capital Adequacy Ratio was at 18.8 per cent as on March 31, 2021.
“The impact of COVID-19, including changes in customer behaviour and pandemic fears, as well as restrictions on business and individual activities, has led to significant volatility in global and Indian financial markets and a significant decrease in global and local economic activities. The slowdown during the year led to a decrease in loan originations, the sale of third party products, the use of credit and debit cards by customers and the efficiency in collection efforts. This may lead to a rise in the number of customer defaults and consequently an increase in provisions there against,” the bank said in a regulatory filing.
Input: The Hindu