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HDFC Bank March Quarter Profit Up Nearly 18%, Asset Quality Improves

HDFC Bank March Quarter Profit Up Nearly 18%, Asset Quality Improves

HDFC Bank's net interest income increased 16.15% to Rs 15,204.1 crore

HDFC Bank on Saturday reported an increase of nearly 18 per cent in net profit for the March quarter, led by strong loan growth. In a regulatory filing, the country's largest private sector lender said its net profit came in at Rs 6,927.69 crore for the quarter ended March 31, as against Rs 5,885.12 crore it had reported for the corresponding period a year ago. HDFC Bank said there was a considerable slowdown in economic activities during the quarter, following the COVID-19 outbreak.

Net revenue - net interest income plus other income - increased 18.2 per cent to Rs 21,236.6 crore for the quarter ended March 31. Total interest earned rose 13.49 per cent to Rs 29,885.06 crore.

Net interest income (NII) - or the difference between interest earned and interest paid - increased to Rs 15,204.1 crore in the March quarter period, marking a year-on-year increase of 16.15 per cent. Advances grew 21.3 per cent and deposits 24.3 per cent, the bank said.

Net interest margin - a key indicator of a bank's profitability - stood at 4.3 per cent in the quarter ended March 31.

The bank said its board had shortlisted three candidates in its search for a new chief executive. It did not elaborate on the three candidates.

The lender's asset quality improved, with gross bad loans as a percentage of the total loans at
1.26 per cent by the end of the quarter, compared with 1.42 per cent in the previous quarter, and 1.36 per cent in the three-month period to March 31, 2019.

On Friday, shares in HDFC Bank ended 3.33 per cent higher at Rs 910.40 apiece on the BSE, in line with a 3.22 per cent increase in the benchmark S&P BSE Sensex index.