HDFC Bank Q1 net up 20.7%, NPA provisioning also rises

Private sector lender HDFC Bank has reported a net profit of Rs2,695.72 crore for the quarter ended 30 June 2015, a 20.72-per cent growth from the net profit of Rs2,233.04 crore in the April-June 2014-15 quarter.

Total income of the bank rose 26.25 per cent to Rs16,502.97 crore during the quarter compared with Rs13,070.65 crore in the previous year quarter, HDFC Bank said in a BSE filing.

HDFC, however, reported a slight decline in its net interest margin to 4.3 per cent in the April-June quarter from 4.4 per cent in the similar quarter of the previous year.

In absolute terms, however, the bank's net interest income increased by 23.5 per cent to Rs6,388.8 crore in April-june 2015-16 from Rs5,171.6 crore in the same quarter last fiscal.

Other income (non-interest revenue) for the April-June 2015-16 quarter grew 33 per cent to Rs2,461.9 crore.

Operating profit grew by 26.2 per cent year-on-year to Rs4,849.9 crore during the quarter while operating expenses for the quarter ended June 2015 increased by 25.9 per cent year-on-year to Rs3,178.4 crore, said the bank.

HDFC Bank said total deposits as of 30 June 2015 stood at Rs4,80,000 crore, a growth of 30.1 per cent over June 2014 and advances grew by 22.4 per cent to Rs3,80,000 crore during the same period.

"This loan growth was contributed by both segments of the loan portfolio, with domestic retail loans and wholesale loans growing by 26.1 per cent and 13.4 per cent, respectively," it added.

The bank's capital adequacy ratio as per Basel III guidelines, was at 15.7 per cent during the quarter as against 15.1 per cent in the corresponding quarter of last fiscal and a regulatory requirement of 9 per cent.

Gross non-performing assets (NPA) fell to 0.95 per cent from 1.07 per cent on year-on-year basis but sequentially increased from 0.93 per cent in the March quarter.

Net NPA also declined to 0.27 per cent from 0.32 per cent year-on-year but increased from 0.25 per cent quarter-on-quarter.

On absolute basis, gross NPA during the quarter increased by 6.2 per to Rs3,652.23 crore and net NPA jumped 14.7 per cent to Rs1,027.7 crore year-on-year.

"Total restructured loans (including applications under process for restructuring) were at 0.1 percent of gross advances as of June 2015 against 0.2 percent in June 2014," said HDFC Bank.

Provisioning for bad loans increased by 50.8 per cent to Rs728 crore in first quarter of FY16 compared to Rs482.8 crore in the year-ago period.