HDFC Bank Q1 Results: Provisions see a sharp jump, other income aids profit

HDFC Bank Ltd., India's largest private lender reported results for the June quarter on Saturday, May 19, where higher other income contributed to the growth in the lender's bottomline.

The lender's Net Interest Income (NII) or core income earned by the lender grew by 5.4% from the same quarter last year to ₹31,438 crore. A CNBC-TV18 poll had projected this figure to be ₹31,384 crore.

Net profit for the period was higher than the CNBC-TV18 poll figure of ₹17,067 crore. HDFC Bank's bottomline grew by 12.2% from the year-ago quarter to ₹18,155 crore.

Asset quality for India's largest private lender remained stable on a sequential basis but saw a marginal deterioration. Gross NPA for the quarter stood at 1.4%, compared to 1.33% in March, while Net NPA stood at 0.47% in June, compared to 0.43% in March.

Provisions for the quarter increased significantly from the March quarter figure of ₹14,441 crore to ₹3,193 crore.

HDFC Bank had already reported its business momentum in its quarterly update earlier this month. The lender's loan book grew by 6.7% from last year to ₹26.53 lakh crore, while deposit growth remained strong at 16.4% from last year to ₹27.64 lakh crore. Deposit growth was led by term deposits, which grew by 20.6% on a year-on-year basis.

Shares of HDFC Bank ended at the day's low on Friday, declining 1.6% to end at ₹1,956. The stock is 3.5% away from its record high level of ₹2,027.