HDFC Bank Q4 profit jumps 18 pc to Rs 6,928 cr, provisions double to Rs 3,785 crore



Private sector lender HDFC Bank on Saturday reported a 17.7 percent year-on-year rise in net profit at Rs 6,928 crore during the January to March quarter.

However, provisions and contingencies nearly doubled to Rs 3,785 crore as compared to Rs 1,899 crore in the same quarter last year.

But significantly, net interest income for the quarter climbed to Rs 15,204 crore from Rs 13,089 crore, driven by 21.3 percent growth in advances and a 24.3 percent growth in deposits. The net interest margin was 4.3 percent.

Gross non-performing assets for Q4 eased to 1.26 percent from 1.42 percent in Q3 and 1.36 percent in the year-ago quarter.

The bank said that the March quarter was marked by a considerable slowdown in economic activity following the COVID-19 outbreak. Due to strict social distancing policy, the bank saw a hit in volumes in terms of loan origination, distribution of third party activities and payments product activities.

"Thus, we could not optimize our collection efforts, and as a result of which fees income were lowered by Rs 450 crore," it said.

Pre-provision operating profit increased by 19.5 percent to Rs 12,959 crore. The credit cost ratio came in at 0.77 percent against 0.92 percent in the December quarter and 0.69 percent in the same quarter last year.

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