HDFC Bank Q1 cons net profit rises 14%

HDFC Bank Q1 cons net profit rises 14%

Shares of HDFC Bank eased 3% Monday, even after the country’s largest private sector lender reported a 14.36% growth in consolidated net profit at Rs 7,922.09 crore. The city-headquartered lender had posted a consolidated net profit of Rs 6,927.24 crore in the corresponding quarter a year ago.
The bank’s net interest income increased 8.6% to Rs 17,009 crore from Rs 15,665.42 crore, YoY.
However, the lender’s net interest margin of 4.1% during the April-June 2021 period was at an 18-quarter low, while core operating profit was down 2.3%, QoQ at Rs 14,536 crore.

Provisions and contingencies for Q1FY22 were at Rs 4,830.8 crore (including contingent provisions of Rs 600 crore), against Rs 3,891.5 crore for the same quarter last year, and Rs 4,693.7 crore in March quarter 2021.
The bank’s asset quality also weakened during the quarter as gross non-performing assets in Q1FY22 were at 1.47% of gross advances as against 1.32% in Q4FY21, and net non-performing assets were at 0.48% against 0.40%, QoQ.

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