Home Business, Finance & Economics India HDFC Bank quarterly, annual profit rise 18% on loan growth

HDFC Bank quarterly, annual profit rise 18% on loan growth

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HDFC Bank quarterly, annual profit rise 18% on loan growth

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MUMBAI: HDFC Bank on Saturday reported a net profit of Rs 8,176 crore for the quarter ended March 2021 – an increase of 18% over Rs 6,927 crore in the corresponding quarter last year. The profit for the entire year was also up 18% at Rs 31,116 crore compared to Rs 26,257 crore a year earlier.
The bank’s consolidated net profit for the quarter ended March 31, 2021, was Rs 8,434 crore, up 15.8%, over the previous year.
Total deposits rose 16% to Rs 13,35,060 crore from Rs 11,47,502 crore last year. Advances grew 14% to Rs 11,32,836 crore from Rs 9,93,702 crore in March 2020.
Growth in advances was driven by an increase in business loans. Retail loans grew by only 8%. Retail loan growth was driven by home loans, Kisan gold cards, and a rise in credit card outstanding. Auto loans were sluggish and the bank shrunk its commercial vehicle and two-wheeler loan portfolio during the year. The credit card outstanding grew 12% during the year to Rs 57,575 crore despite RBI barring the bank from issuing new cards in the fourth quarter.
Despite the sharp growth in advances, interest income was up only 1% at Rs 23,811 crore. But a 9% drop in net interest expenses resulted in Net interest income for the quarter ended March 31, 2021, growing by 12.6% to Rs 17,120.2 crore from Rs 15,204 crore last year.
Profits were hit by a 24% increase in provisioning to Rs 4693 crore. The bank’s finance subsidiary HDB Financial Services however reported a drop in net profit to Rs 502 crore for the year ended March 2021 from Rs 1036 crore for the year ended March 2020.
Gross non-performing assets (NPAs) were at 1.32% of gross advances as of March 31, 2021, as against 1.26% as of March 31, 2020. Net non-performing assets were at 0.40% of net advances as of March 31, 2021.

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