HDFC Bank Q3 Profit jumps 34%

 

HDFC Bank Ltd on Tuesday reported a 33.54 per cent year-on-year (YoY) rise in standalone net profit at Rs 16,372.54 crore for the December quarter compared with Rs 12,259.49 crore in the same quarter last year. The profit figure was largely in line with Street estimates. Net interest income (NII) for the quarter, which is interest earned less interest expended, rose 23.9 per cent YoY to Rs 28,470 crore compared with Rs 22,990 crore in the same quarter last year. The NII growth was slightly lower than analyst estimates of 25 per cent. 

Pre-provision operating profit jumped 24.3 per cent to about Rs 23,650 crore. Provisions for the quarter jumped to about Rs 4,220 crore from Rs 2,810 crore in the year-ago quarter. The private lender said its core net interest margin (NIM) stood at 3.4 per cent on total assets, and 3.6 per cent based on interest earning assets.

Gross non-performing assets were at 1.26 per cent of gross advances as on December 31, 2023, against 1.34 per cent as on September 30, 2023, and 1.23 per cent as on December 31, 2022. Net non-performing assets were at 0.31 per cent of net advances as on December 31.

Non-interest revenue for the quarter ended December 31, 2023 stood at about Rs 11,140 crore compared with Rs 8500 crore in the corresponding quarter ended December 31, 2022. Among the four components of other income, fees & commissions stood at Rs 6,940 crore billion against Rs 6,050 crore YoY.

Foreign exchange & derivatives revenue came in at Rs 1210 crore against Rs 1,070 crore YoY; net trading and mark-to-market gain stood at Rs 1,470 crore against a gain of Rs 260 crore YoY. Miscellaneous income, including recoveries and dividend, stood at Rs 1,520 crore against Rs 1,110 crore.

HDFC Bank said its operating expenses were up 28.1 per cent to Rs 15,960 crore over Rs 12,460 crore in the corresponding quarter last year. The cost-to-income ratio for the quarter was at 40.3 per cent.

The Bank's total Capital Adequacy Ratio (CAR) as per Basel II guidelines stood at 18.4 per cent against 19.4 per cent YoY. This is against a regulatory requirement of 11.7 per cent.

As of December 31, 2023, HDFC Bank's distribution network was at 8,091 branches and 20,688 ATMs across 3,872 cities / towns as against 7,183 branches and 19,007 ATMS across 3,552 cities / towns as of December 31, 2022. A total of 52 per cent of its branches were in semi-urban and rural areas.

"In addition, we have 15,053 business correspondents, which are primarily manned by Common Service Centres (CSC). The number of employees were at 2,08,066 as of December 31, 2023 (as against 1. ,66, 890 as of December 31, 2022)," the bank said in a BSE filing.

Domestic retail loans grew 111.1 per cent, commercial and rural banking loans grew 31.4 per cent and corporate, and other wholesale loans (excluding non-individual loans of eHDFC Ltd of approximately Rs 98,900 crore) grew 11.2 per cent. Overseas advances constituted 1.7 per cent of total advances.

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For 'biggest scam in India's history', RBI, two private sector banks get threat mails

The sender also claimed to have planted bombs at 11 locations across Mumbai, where the three banks – HDFC and ICICI are the other two – are headquartered.

The Reserve Bank of India (RBI), which is headquartered in Mumbai, and two city-based private sector banks (HDFC and ICICI) on Tuesday received threat mails, in which the sender accused the RBI and private sector banks of carrying out the ‘biggest scam in the history of India,’ and claimed to have planted bombs at 11 locations across the financial capital, Mint reported citing Mumbai Police.

The sender also demanded the resignation of Union finance minister Nirmala Sitharaman and RBI governor Shaktikanta Das, among others, for their 'involvement' in the so-called ‘scam.’

“We demand that both RBI Governor and Finance Minister to immediately resign from their posts and release a press statement with a full disclosure of the scam. We also demand government to give them both and all those who are involved the punishment they deserve,” the emails said, as per Mint.

Where were the ‘bombs’ planted?

Three of the locations at which the sender claimed to have planted bombs were: RBI-New Central Building, Fort; HDFC House-Churchgate; and ICICI Bank Towers, BKC (Bandra-Kurla Complex). Also, the mails warned that the explosives would detonate at 1:30 pm.

What did the police find?

The Mumbai Police said that upon being made aware of the mails, they sent their personnel to each of the 11 locations, though nothing was found.

“A case has been registered and the probe is underway,” a police official told news agency ANI.

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HDFC Bank Q1 Results: Net profit jumps 30%, maintains healthy asset quality

HDFC Bank on July 17 reported a net profit of Rs 11,951 crore for the April-June quarter FY24, a jump from Rs 9,196 crore in the quarter ended June 30, 2022. The net profit slightly exceeded the market expectations. At least four brokerages had predicted a net profit of Rs 11,581 crores whereas HDFC Bank reported a net profit of Rs 11,951 crore.

The country's largest private sector bank's net interest income (NII) grew by 21.1 percent to Rs 23,599 crore from Rs 19,481 crore for the quarter ended June 30, 2022. Core net interest margin was at 4.1 percent on total assets, and 4.3 percent based on interest earning assets.

The lender's gross non-performing assets (GNPA) ratio stood at 1.17 percent, improving from 1.28 percent in the corresponding period a year ago.

Similarly, its net NPA (NNPA) stood at 0.30 percent from 0.35 percent last year. The lender's net profit jumped from Rs 9,196 crores in the corresponding quarter last year to Rs 11,951 crores in Q1FY24.

On the deposit side, total deposit of the bank stood at Rs 19.13 lakh crores, jumping by 19.2 percent on a year-on-year basis.

Current account and savings account (CASA) grew by 10.7 percent where total current account deposits stood at Rs 2.52 lakh crores and savings account deposits stood at Rs 5.6 lakh crores. Whereas time deposits of the bank stood at Rs 11 lakh crores, improving by 26.4 percent.

Total advances of the bank grew by 15.8 percent on a year-on-year basis and stood at Rs 16.15 lakh crores.

Domestic retail loans grew by 20 percent, commercial and rural banking loans grew by 29.1 percent and corporate and other wholesale loans grew by 11.2 percent.

The lender's treasury segment reported a revenue of Rs 10,537 crores, jumping from Rs 7,379 crores in the corresponding quarter last year.

Retail banking, which formed the bank's major revenue, stood at Rs 42,939 crores compared to Rs 31,685 crores last year. Whereas the lender's wholesale banking stood at Rs 28,332 crores, jumping from Rs 18,642 crores.

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HDFC Bank Q4 Results: Net profit rises 21% YoY , asset quality stable

HDFC Bank on April 15 reported a 21 percent YoY rise in consolidated net profit to Rs 12,594.5 crore for the quarter ended March 31. The private lender posted a 20.3 percent YoY growth in consolidated net revenue to Rs 34,552.8 crore during the quarter, against Rs 28,733.9 crore recorded during the quarter ended March 31, 2022.

Profit before tax (PBT) for the quarter ended March 31, 2023 was at Rs 15,935.5 crore. After providing Rs 3,888.1 crore for taxation, the bank earned a net profit of Rs 12,047.5 crore, an increase of 19.8 percent over the quarter ended March 31, 2022.

Net interest income (NII), or the difference between interest earned and interest expended, grew by 23.7 percent to Rs 23,351 crore from Rs 18,872 crore for the quarter ended March 31, 2023, HDFC Bank said in an exchange filing.

The average of a poll of three brokerages estimated that the profits will rise to Rs 12,181 crore. Net interest income (NII) was expected to increase 30.5 percent on-year (up 8.8 percent QoQ) to Rs 24,601.9 crore, whereas the average poll of estimates saw HDFC Bank to report 21.9 percent YoY rise in March quarter profits.

Standalone revenue grew by 21 percent to Rs 32,083.0 crore for the quarter ended March, 2023 from Rs 26,509.8 crore posted a year ago.

The lender said its total deposits showed healthy growth and were at Rs 1,883,395 crore as of March 31, 2023, an increase of nearly 21 percent over March 31, 2022. Meanwhile, total advances as of March 31, 2023 were Rs 1,600,586 crore, an increase of 16.9 percent over March 31, 2022.

“Domestic retail loans grew by 20.8 percent, commercial and rural banking loans grew by 29.8 percent and corporate and other wholesale loans grew by 12.6 percent,” HDFC Bank said in the exchange filing.

Coming to asset quality, the gross non-performing assets were at 1.12 percent of gross advances as on March 31, 2023 as against 1.23 percent as on December 31, 2022 and 1.17 percent as on March 31, 2022. While, net non-performing assets were at 0.27 percent of net advances as on March 31, 2023.

HDFC Bank’s board also recommended a dividend of Rs 19 per share for the year ended March 31, 2023, as against Rs 15.5 for the previous year. This is subject to shareholders' approval.

Further, the bank's total Capital Adequacy Ratio (CAR) as per Basel Ill guidelines was at 19.3 percent as on March 31, 2023 (18.9 percent as on March 31, 2022) as against a regulatory requirement of 11.7 percent, it added.

Provisions and contingencies for the quarter ended March 31, 2023 were Rs 2,685.4 crore as against Rs 3,312.4 crore for the quarter ended March 31, 2022.

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HDFC Bank Q1 results: Net profit jumps 19% to ₹9,196 crore; NII rises 14.5%

HDFC Bank, the country's largest private lender, on Saturday reported a 19% year-on-year (YoY) rise in its net profit for the April-June quarter at ₹9,196 crore after providing ₹2,984.1 crore for taxation.

HDFC Bank had posted a net profit of ₹7,729.64 crore in the year-ago period.

Net interest income (NII) for the June quarter grew by 14.5% to ₹19,481.4 crore from ₹17,009.0 crore for the same quarter last year. It was driven by advances growth of 22.5%, deposits growth of 19.2% and total balance sheet growth of 20.3%.

The private lender's net revenue (excluding trading and Market to Market losses) grew by 19.8% to ₹27,181.4 crore for the June quarter from ₹22,696.5 crore for the same quarter last year. 

The total net revenues i.e. net interest income plus other income) were ₹25,869.6 crore for the April-June quarter.

Core net interest margin was at 4.0% on total assets, and 4.2% based on interest earning assets. “We continued to add new liability relationships at a robust pace of 2.6 million during the quarter," the bank said in a regulatory filing.

Gross non-performing assets (NPA) were at at 1.28% of gross advances as on 30 June this year (1.06% excluding NPAs in the seasonal agricultural segment) as against 1.47% as on 30 June last year, (1.26% excluding NPAs in the seasonal agricultural segment). Net NPA were at 0.35% of net advances as on 30 June, 2022.

Pre-provision Operating Profit (PPOP) was at ₹15,367.8 crore. PPOP, excluding trading and Mark to Market losses, grew by 14.7% over the quarter ended 30 June last year.

Provisions and contingencies for the Q1FY23 were ₹3,187.7 crore (which were specific loan loss provisions) as against total provisions of ₹4,830.8 crore for Q1FY22.

Meanwhile, global brokerage BNP Paribas expected the lender's bottom-line to grow mere 13.4% ( ₹9,284.5 crore) YoY, JPMorgan pegged the expansion at a more aggressive pace of 32.4% ( ₹10,232 crore).

Domestic brokerages Motilal Oswal Financial Services, and Emkay Global Financial Services had expected PAT (profit after tax) to swell up to 20% ( ₹9,280 crore) YoY.

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HDFC Bank Q4 net profit jumps 23% YoY

HDFC Bank, the largest private sector lender in India, on April 16 reported a 23 percent year-on-year (YoY) growth in standalone net profit at Rs 10,055.2 crore for the quarter ended March 2022 as bad loans provisions declined 29 percent, with further improvement in asset quality. A year back, the standalone profit stood at Rs 8,186.51 crore.

Net interest income (NII), the difference between interest earned and interest expended, increased 10.2 percent YoY to Rs 18,872.7 crore in Q4, with credit growth of nearly 21 percent and 16.8 percent growth in deposits YoY. "Core net interest margin was at 4 percent on total assets, and 4.2 percent based on interest-earning assets, said the bank in its BSE filing on April 16.

HDFC Bank further said its advances grew by 20.8 percent YoY to Rs 13.69 lakh crore in the fourth quarter of FY22, with growth in retail loan book at 15 percent, commercial and rural banking loans at 30.5 percent, and corporate and other wholesale loans at 17.5 percent over the corresponding period last fiscal.

The bank recorded a 16.8 percent YoY growth in deposits at Rs 15.59 lakh crore as of March 2022, with retail deposits rising 18.5 percent, and wholesale deposits scaling 10 percent on-year.

The share of Current Account Savings Accounts (CASA) deposits stood at Rs 7.51 lakh crore as of March 2022, a growth of around 22 percent YoY, while the ratio of CASA deposits increased to 48 percent in the March 2022 quarter, compared to 46.1 percent in the corresponding period last fiscal, the bank said.

Provisions and contingencies fell sharply to Rs 3,312.4 crore at the end of the March 2022 quarter, down 29.4 percent compared to the year-ago period, but the same increased 10.6 percent on a sequential basis.

Total provisions for March 2022 quarter included contingent provisions of approximately Rs 1,000 crore, said the bank, adding the floating provisions were Rs 1,451 crore and contingent provisions at Rs 9,685 crore as of March 2022.

Asset quality improved further with the gross non-performing assets (as a percentage of gross advances) falling 9 bps QoQ to 1.17 percent and net NPAs (as a percentage of net advances) declining 5 bps sequentially to 0.32 percent at the end of the March quarter.

Non-interest income (or other income) grew by around half a percent to Rs 7,637 crore in Q4FY22 as there was a loss on sale or revaluation of investments during the quarter at Rs 40.3 crore (against income of Rs 655.1 crore in the same period last year, said the bank.

The fees and commissions segment, which contributed 74 percent to other income, grew by 12 percent to Rs 5,630.3 crore in the same period.

Pre-provision operating profit (PPoP) at Rs 16,357 crore registered a 5.3 percent YoY growth compared to the corresponding quarter of last fiscal as operating expenses increased by 10.6 percent YoY.

The bank said its total capital adequacy ratio (CAR) stood at 18.9 percent as of March 2022, up from 18.8 percent as of the same period last year, with Tier-I CAR at 17.9 percent increasing by 30 bps YoY.

During the quarter ended March 2022, the bank purchased loans aggregating Rs 8,117 crore through the direct assignment route under the home loan arrangement with Housing Development Finance Corporation (HDFC).

For the full financial year 2021-22, the bank reported a profit of Rs 36,961.3 crore, a growth of 18.8 percent over the previous year, and net interest income at Rs 72,009.6 crore - up 11 percent during the same period.

On April 4 this year, the board of directors approved the merger of HDFC with HDFC Bank. The combined entity in terms of market capitalisation would be the third-largest in India, which is subject to several requisite approvals, including that from the Reserve Bank of India, Competition Commission of India, National Housing Bank, and Insurance Regulatory and Development Authority of India. HDFC shareholders will get 42 equity shares of HDFC Bank for every 25 shares held by them.

The private sector lender added 563 branches during the March quarter, taking the network to 6,342 units as of the end of FY22.

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HDFC Bank Q3 profit rises 18%

 

Leading private sector lender HDFC Bank on January 15 clocked standalone net profit of Rs 10,342 crore for the December 2021 quarter, up 18 percent year-on-year backed by decline in bad loan provisions.The profit in corresponding quarter last fiscal was at Rs 8,758.29 crore.

Net interest income, the difference between interest earned and interest expended, climbed 13 percent to Rs 18,444 crore in Q3FY22, with net interest margin at 4.1 percent for the quarter, and healthy credit growth of 16.4 percent.Profit and net interest income grew by 17 percent and 4.3 percent on sequential basis in Q3.

HDFC Bank on January 4 had said advances for the quarter at Rs 12.6 lakh crore grew by 16.4 percent compared to year-ago period and the sequential growth was 5.1 percent. "Retail loan growth was 13.5 percent YoY (up 4.5 percent QoQ) and corporate loan book growth at 7.5 percent YoY (up 4.5 percent QoQ)."

The bank further said it registered 13.8 percent YoY growth (up 2.8 percent QoQ) in deposits at Rs 14.46 lakh crore with CASA deposits rising 24.6 percent YoY (up 3.5 percent QoQ) to Rs 6.81 lakh crore in December 2021 quarter. "CASA ratio stood at around 47 percent as of December 31, 2021, as compared to 43 percent as of December 2020 and 46.8 percent as of September 2021."

Provisions and contingencies for the quarter at Rs 2,994 crore declined 12.3 percent year-on-year, and dropped 23.7 percent over previous quarter, which comprised a specific loan loss provisions of Rs 1,820.6 crore, and general and other provisions of Rs 1,173.4 crore.

"Total provisions for the December quarter included contingent provisions of approximately Rs 900 crore," said HDFC Bank.The total credit cost ratio was at 0.94 percent for the quarter, said the bank. This was against 1.3 percent reported for September 2021 quarter and 1.25 percent for December 2020 quarter.

Asset quality improved further as the gross non-performing assets (GNPAs) as a percentage of gross advances fell 9 bps sequentially to 1.26 percent and net NPAs declined 3 bps QoQ to 0.37 percent at the end of December 2021.

"Total provisions (comprising specific, floating, contingent and general provisions) were 172 percent of the gross non-performing loans as on December 31, 2021," said HDFC Bank.The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 8,636 crore as of December 2021.

Pre-provision operating profit grew by 10.5 percent year-on-year to Rs 16,776 crore and other income (non-interest income) increased by 9.94 percent to Rs 8,183.55 crore for the December 2021 quarter.

The growth in other income was driven by forex & derivatives revenue, and recoveries & dividend, while fees & commissions, which contribute 62 percent to non-interest income, saw moderate growth YoY.

"Fees & commissions income at Rs 5,075.1 crore for the quarter grew by 2 percent, foreign exchange & derivatives revenue at Rs 949.5 crore increased by 68.8 percent, and miscellaneous income including recoveries & dividend at Rs 1,112.5 crore rose by 39.56 crore," said the company in its BSE filing.

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Suspicious transactions detected in this bank,three staffs arrested

HDFC Bank on October 19 said it detected certain suspicious transactions within its system. The bank reported the incident to the Delhi Cyber Crime Cell. Based on the complaint the police arrested 12 persons including three bank employees.

"Our systems detected unauthorised and suspicious attempts to transact in certain accounts. We reported the matter to law enforcement agencies for further and necessary investigation and lodged an FIR" the bank said.

Based on the FIR, the Delhi Police arrested three people who are working within the bank. The arrests were made in Delhi yesterday, according to a bank communication official.

The Bank said it suspended the three people pending the outcome of the investigation.

"The bank is extending full support to the law enforcement agencies in the investigation. At HDFC Bank, there's zero tolerance for any misconduct, financial or otherwise," HDFC Bank said.

According to a statement issued by K P S Malhotra, DCP/Cyber Crime, Special Cell, overall 12 persons were arrested including three HDFC bank employees in relation to the incident.

The fraudsters were involved in attempts to make unauthorized withdrawal from a very high value NRI account. The Police has recovered a fraudulently obtained cheque book from the suspects. According to the police mobile phone number identical to that of account holder's US based phone number was procured by the fraudsters and 66 attempts of unauthorized online transactions made by this group on this high value NRI account.

Racket busted

With these arrests, the Cyber Crime Unit of Special Cell has busted a racket of fraudsters involved in unauthorized attempts and hacking through internet banking and attempts of withdrawal using fraudulently obtained cheque book of a high valued NRI customer of HDFC Bank.

“They also procured an Indian mobile phone number identical to the USA's mobile number of the account holder registered in the KYC. 12 persons including 3 employees of HDFC bank, have been arrested,” the statement said.

HDFC Bank had filed complaint with Cyber Crime Unit of Special Cell alleging therein that there are many unauthorized internet banking attempts noticed in one NRI bank account.

Further there have been attempts to withdraw cash from the same account, using the fraudulently obtained cheque book. Attempts were also made to get update mobile phone number in the KYC of the same bank account by replacing the already registered US mobile phone number with similar/identical Indian mobile phone number, the statement said.

HDFC Bank further alleged that in all 66 attempts were made to access the internet banking of the account.

After the complaint was received, the Delhi Cyber Crime team was tasked to identify the culprits on the basis of technical footprints and human intelligence.

“On the basis of technical evidence, footprints, and human intelligence, multiple geolocations were identified. In all, raids were conducted at 20 locations across Delhi, Haryana and Uttar Pradesh. During the course of investigation, in all 12 persons have been arrested. Out of the 12 arrested accused persons, 3 are HDFC bank employees, who were involved in issuing the cheque book, updating the mobile phone number and removing the debt freeze of the account,” the statement said.

The arrested persons include D. Chaurasiya and A. Singh—both HDFC Employees. A third female HDFC Bank employee too was arrested. The Police didn't disclose the name of the person.

How the crime happened

According to the Police, from the interrogation of the accused persons revealed that the main mastermind has come to know that an NRI account is dormant and has huge funds. With the help of one female employee of HDFC Bank, the perpetrators got issued a cheque book of the said account and also got removed the debt freeze of the account.

The investigation has revealed that HDFC bank employee was promised Rs 10 lakhs and insurance business of Rs 15 lakhs. In the earlier instances, there were attempts of withdrawal of money from this account. Two cases were earlier registered one at Ghaziabad, UP and one at Mohali, Punjab.

Chaurasiya and A.Singh (both employees of HDFC bank) had attempted to update the phone number linked in the KYC. Other associates had tried to login to the internet banking of the account for the purpose of transfer of amount. “All these attempts of withdrawal, unauthorized login attempts to internet banking, updating of mobile phone number was only possible due to connivance of the bank employees,” the Police statement said.

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HDFC Bank Q2 Result, Profit grows 17.6%

HDFC Bank, the largest private sector lender in India, has reported standalone profit at Rs 8,834.31 crore for September 2021 quarter, a 17.6 percent higher compared the corresponding period last fiscal, driven by higher other income, and marginal increase in provisions. The sequential growth in profit was at 14.3 percent for the quarter.

Net interest income, the difference between interest earned and interest expended, increased 12.1 percent YoY to Rs 17,684.4 crore during the quarter, with healthy loan growth.

"Advances grew at 15.5 percent reaching new heights driven through relationship management, digital offering and breadth of products. Core net interest margin was at 4.1 percent," said HDFC Bank in its BSE filing.

The advances increased to Rs 11.98 lakh crore in Q2FY22 YoY and the same increased 4.4 percent, sequentially. Loan growth was supported by, "retail segment that registered 12.9 percent YoY growth and commercial & rural banking segment that grew 27.6 percent YoY during the quarter," said the bank, adding other wholesale loans grew by around 6 percent YoY.

The bank further said new liability relationships added during the quarter were at an all-time high. "This continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 123 percent, well above the regulatory requirement, which positions the bank favourably to capitalise on the opportunities that would arise as the economy gains momentum during the festive months.

Deposits at Rs 14.06 lakh crore in the quarter ended September 2021 increased 14.4 percent compared to corresponding period previous fiscal, with retail deposits growth 17.5 percent and wholesale deposits at 2 percent YoY.

Provisions and contingencies at Rs 3,924.66 crore for the September quarter included contingent provisions of Rs 1,200 crore, growing 6 percent over a year-ago period but declined 18.8 percent on sequential basis.

The bank said it held floating provisions of Rs 1,451 crore and contingent provisions of Rs 7,756 crore as of September 2021, and total provisions were 163 percent of the gross non-performing loans as of September 2021.

Provision coverage ratio improved further to 70.9 percent in the second quarter of FY22, from 67.9 percent in June quarter.

On the asset quality front, gross non-performing loans at 1.35 percent of gross advances as of September 2021 were higher compared to 1.47 percent in June 2021 quarter, while net non-performing assets at 0.4 percent for the quarter declined from 0.48 percent in previous quarter.

Pre-provision operating profit at Rs 15,807.3 crore in Q2 grew by 14.4 percent over the corresponding period of previous year, the slowest growth in 21 quarters.

HDFC Bank said other income (non-interest income) at Rs 7,400.8 crore in Q2FY22 grew by 21.5 percent year-on-year, as fees & commissions, which accounted for 67 percent of other income, jumped 25.5 percent to Rs 4,945.9 crore YoY.

Foreign exchange & derivatives revenue, and miscellaneous income (recoveries and dividend) grew by 55 percent to Rs 867 crore and 58.5 percent to Rs 912 crore YoY respectively, but gain on sale/revaluation of investments fell 33.5 percent to Rs 675.5 crore in the same period, it added.

During the quarter ended September 2021, the private sector lender purchased loans aggregating Rs 7,132 crore through the direct assignment route under the home loan arrangement with promoter Housing Development Finance Corporation.

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HDFC Bank's Q1 net profit rises 16.1% YoY

HDFC Bank reported a net profit of Rs 7,730 crore in the second quarter (Q1) ended June 30, 2021, up by 16.1% year-on-year (YoY) as compared to Rs 6,659 crore in the same quarter last financial year 2020-21 (FY21). The figure was lower than ET Now poll of Rs 7,900 crore.

Net interest income for the quarter under review was up 18% to Rs 17,009 crore as compared to Rs 15,665.4 crore in Q2 FY21 driven by advances growth of 14.4%, and a core net interest margin of 4.1%.

India's largest private lender reported a total income of Rs 36771.47 crore during the June quarter against Rs 34,453.28 crore last year. The bank also recommended a dividend of Rs 6.50 per share in the board meeting held on Saturday.

Gross non-performing assets (NPAs) or bad loans rose sharply 13% quarter-on-quarter (QoQ) to Rs 17,098 crore as compared to Rs 15,086 crore in January-March 2021 quarter. 

Provisions and contingencies for the quarter ended June 2021 quarter were Rs 4,830.8 crore as against Rs 3,891.5 crore for the quarter ended June 30, 2020.

"The country was hit by a second wave of COVID-19, with a significant surge in cases following the discovery of mutant coronavirus strains. While there was an improvement towards the end, business activities remained curtailed for almost two-thirds of the quarter. These disruptions led to a decrease in retail loan origination, sale of third party products, card spends and efficiency in collection efforts. The lower business volumes, coupled with higher slippages, resulted in lower revenues, as well as an enhanced level of provisioning," said HDFC Bank in a statement. 

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HDFC Bank reported 18.2 per cent up in Y-o-Y profit

HDFC Bank reported an 18.2 per cent on-year jump in standalone net profit to Rs 8,186.51 crore for the January-March quarter of FY21. The company had posted a profit of Rs 6,927.6 crore in the corresponding quarter of the previous year. Amid the second COVID-19 wave, the company informed that its board has considered it prudent to currently not propose a dividend for the financial year ended March 31, 2021. India’s largest private sector lender’s Net Interest Income (NII), the difference between interest earned through lending and interest paid to depositors, witnessed a 12.6 per cent on-year rise to Rs 17,120 crore in the quarter under review, as compared to Rs 15,204 crore in the same period last year.

The Bank’s net revenues (net interest income plus other income) rose to Rs 24,713 crore in the fourth quarter of FY21 from Rs 21,236 crore in the previous year.

HDFC Bank Q4 results:

HDFC Bank maintained a healthy liquidity coverage ratio at 138 per cent, which was well above the regulatory requirements.

Operating expenses in the January-March 2021 quarter, stood at Rs 9,181.3 crore, a jump of 10.9 per cent over Rs 8,277.8 crore during the corresponding quarter of the previous year.

The cost-to-income ratio for the quarter ended March 31, 2021, was at 37.2 per cent as compared to 39 per cent in the year-ago period.

Other income (non-interest revenue) came in at Rs 7,593.9 crore, which was 30.7 per cent of net revenues in the fourth quarter of FY21 and grew by 25.9 per cent over Rs 6,032.6 crore in the quarter ended March 31, 2020.

Total deposits of the HDFC Bank stood at Rs 13 lakh crore, a rise of 16.3 per cent over March 31, 2020. CASA deposits increased by 27 per cent with savings account deposits at Rs 4.03 lakh crore and current account deposits at Rs 2.12 lakh crore.

HDFC Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines stood at 18.8 per cent in the March quarter of 2021 (against 18.5 per cent as on March 31, 2020), as against a regulatory requirement of 11.075 per cent.

Gros non-performing assets were at 1.32 per cent of gross advances as on March 31, 2021, as against 1.38 per cent as on December 31, 2020, and 1.26 as on March 31, 2020.

HDFC Bank’s distribution network was at 5,608 branches and 16,087 ATMs/ cash deposit and withdrawal machines (CDMs) across 2,902 cities or towns.

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HDFC Bank Q3 Results: Net Profit Jumps 18%

HDFC Bank, the country's largest private lender, reported a net profit of Rs. 8758.3 crore on Saturday, January 16, marking an 18.1 rise in the October-December quarter. The bank's total income increased to Rs. 37,522 crore on a standalone basis as compared to Rs. 36,039 crore in the year-ago period. The growth in the third quarter was mostly led by non-interest income as well as pre-provision operating profit with improved asset quality performance.

The asset quality of the bank improved during the October-December quarter as the gross non-performing assets (NPA) ratio stood at 0.81 per cent of the total assets as against 1.42 per cent in the year-ago period and 1.08 per cent at the end of the preceding September quarter, according to HDFC bank.

HDFC Bank's net revenues or net interest income plus other income grew to Rs. 23,760.8 crore in the third quarter of the current financial year from Rs. 20,842.2 crore in the year-ago period.

HDFC Bank's net interest income - the difference between interest earned and interest expended - grew by 15.1 percent to Rs. 16,317.6 crore in the third quarter, driven by advances growth of 15.6 percent, and a core net interest margin for the quarter of 4.2 percent, as compared to Rs.14,172.9 crore in the year-ago period.

The operating expenses for the third quarter were Rs. 8,574.8 crore, an increase of 8.6 per cent over Rs. 7,896.8 crore during the corresponding quarter of 2019. The cost-to-income ratio for the quarter was at 36.1 per cent as against 37.9 per cent for the corresponding quarter of 2019.

The restructuring under the Reserve Bank of India resolution framework for COVID-19 was approximately 0.5 per cent of advances.

The total credit cost ratio was at 1.25 per cent, declining from 1.41 per cent in the previous quarter, and from 1.29 per cent in the corresponding quarter from the year-ago period, said the bank.

The non-interest income or other income was at Rs. 7,443.2 crore - 31.3 per cent of the net revenues, for the third quarter of the financial year, as against Rs. 6,669.3 crore in the corresponding quarter of 2019, driven by fees and commissions and sale or revaluation of investments.

The bank said that it continues to hold provisions as of December 31, 2020, against the potential impact of COVID-19 in the excess of the RBI prescribed norms.

In the second quarter of the current financial year, HDFC Bank reported a net profit of Rs. 7,513.11 crore, marking an increase of 18.41 per cent as compared to the corresponding period a year ago.

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WhatsApp Pay goes live in India with four banks

WhatsApp Pay on Wednesday announced it is now live with State Bank of India, HDFC Bank, ICICI Bank and Axis Bank for its up to 20 million users in India. After two years of waiting, Facebook-owned WhatsApp payment service received approval from the National Payments Corporation of India (NPCI) in November to go live on Unified Payment Interface (UPI) with over 160 supported banks.

WhatsApp can expand its UPI user base in a graded manner starting with a maximum registered user base of 20 million. "UPI is a transformative service and we jointly have the opportunity to bring the benefits of our digital economy and financial inclusion to a large number of users who have not had full access to them before," Abhijit Bose, Head of WhatsApp, India, said during the Facebook 'Fuel for India' virtual event.

The peer-to-peer (P2P) payment feature is available now in 10 Indian regional language versions of WhatsApp.

"We introduced banking services on WhatsApp in April. Over two million users have adopted banking services on WhatsApp in this short span. Now with WhatsApp Payments, there is a unique opportunity to scale essential financial services to people all over the country with ease," said Bijith Bhaskar, Head - Digital Channels & Partnership, ICICI Bank.

According to a latest report by Bengaluru-based research firm RedSeer, digital payments in India are expected to reach $94 trillion by the financial year 2025.

"We're excited and privileged to partner with State Bank of India, ICICI Bank, HDFC Bank and AXIS Bank to bring simple and secure digital payments to WhatsApp users across India," Bose said in a statement.

SBI now offers UPI services through the WhatsApp Payments, bringing the convenience of easy and instant mobile based payments.

Parag Rao, Country Head-Payments Business, Consumer Finance, Digital Banking & Marketing, HDFC Bank said that the partnership with WhatsApp Pay is yet another important step toward achieving financial inclusion and making affordable financial services available to Indians.

"Such partnerships will further fuel the economic growth and development of the nation," Rao added.

WhatsApp had said earlier that the payments feature is designed with a strong set of security and privacy principles, including entering a personal UPI PIN for each payment.

In India, the WhatsApp payment service competes against major players like Paytm, Google Pay and PhonePe, among others.

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HDFC Bank reports 18.4% jump in Q2 profit

HDFC Bank, the country's largest private sector lender, reported a 18.4  percent year-on-year (y-o-y) growth in profit at Rs 7,513.11 crore for the September quarter, driven by PPoP, NII and lower tax rate.

The profit in the year-ago period was at Rs 6,345 crore.

Net interest income, the difference between interest earned and interest expended, increased by 16.7 percent y-o-y to Rs 15,776.4 crore in the September quarter, driven by asset growth of 21.5 percent and a core net interest margin for the quarter at 4.1 percent, HDFC Bank said in its BSE filing.

The continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 153 percent, well above the regulatory requirement.

On October 5, HDFC Bank said it registered a 15.8 percent y-o-y growth in advances approximately of Rs 10.37 lakh crore during the September quarter, while deposits aggregated to approximately Rs 12.29 lakh crore as increased around 20.3 percent y-o-y.

Asset quality has improved sequentially against expectations of marginal increase, due to the Supreme Court order on NPA classification.

Gross non-performing assets as a percentage of gross advances fell 28 bps q-o-q to 1.08 percent at the end of the September quarter, while net NPAs declined 16 bps q-o-q to 0.17 percent in Q2FY21.

However, "if the bank had classified borrower accounts as NPAs after August 31, 2020, and also adopted an early recognition of NPAs using its analytical models (proforma approach), the proforma gross NPA and net NPA ratio would have been 1.37 percent and 0.35 percent. Pending disposal of the case, the bank, as a matter of prudence, has made a contingent provision in respect of these accounts," HDFC Bank said.

Provisions and contingencies, as expected, increased to Rs 3,703.5 crore in Q2FY21, higher by 37.1 percent compared to Rs 2,700.68 crore, while the same fell 4.8 percent compared to the year-ago period.

"Total provisions include contingent provisions of approximately Rs 2,300 crore for proforma NPAs as well as additional contingent provisions to make the balance sheet more resilient," the bank said.

Non-interest income in Q2FY21 grew by 9 percent to Rs 6,092.45 crore, impacted by lower retail loan origination, use of debit and credit cards by customers, efficiency in collection efforts and waivers of certain fees, HDFC Bank said.

Pre-provision operating profit during the quarter increased 18.1 percent to Rs 13,813.78 crore, compared to the same period last year.

During the quarter ended September 2020, HDFC Bank said it purchased loans aggregating Rs 3,026 crore through the direct assignment route under the home loan arrangement with Housing Development Finance Corporation (HDFC).

Meanwhile, the bank has approved the appointment of Sashidhar Jagdishan as an Additional Director and as the Managing Director and Chief Executive Officer, subject to the approval of the shareholders of the bank, for a period of three years from October 27, 2020.

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Private bank employee arrested by CBI for accepting bribe

In possibly the first of its kind case, the Central Bureau of Investigation has arrested a Relationship Manager and Rural Sales Executive of a private sector bank on Thursday for allegedly demanding and accepting a bribe of Rs two lakh to sanction and disburse loan to a customer.

A farmer from Baramati who also runs a business and had applied for a loan of Rs 99 lakh, approached the CBI with a complaint that the bank officials were demanding bribe from him. After preliminary verification, a team from the Anti Corruption Branch of the CBI, Pune laid trap in Baramati on Wednesday evening and arrested the Rural Sales Executive of the HDFC Bank Ganesh Dhaygude red-handed while accepting the bribe of Rs two lakh. Subsequently Relationship Manager Nitin Nikam was arrested, according to the agency.

The CBI said in a press statement, “A case was registered against the Relationship Manager, HDFC Bank, Baramati Branch on a complaint. It was alleged that the Relationship Manager had demanded a bribe of Rs. 2.7 lakh from the complainant for the sanction and disbursement of loan of Rs. 99 lakh from HDFC Bank, Baramati Branch, Pune to the complainant. It was further alleged that the bribe amount was later negotiated to Rs. 2.25 lakh. The accused sent his junior (Rural Sales Executive) to collect the bribe from the complainant. CBI laid a trap and caught the Rural Sales Executive red handed while accepting the bribe of Rs. two lakh from the complainant. The Relationship Manager was also arrested.”

HDFC said in a statement that it would initiate action against its employees and cooperate with the investigation.

“The matter has been brought to our notice. As a responsible corporate, we have zero tolerance towards any such deviations or acts by employees. Appropriate staff action will be initiated and we will also support the police in its investigation,” the bank said.

CBI officials said that searches were conducted at the office and residential premises of accused at Baramati till early hours of Friday.

The primary purview of the Anti Corruption Branch of the CBI is that of cases falling under the Prevention of Corruption Act against Central Government public servants. CBI officials said that in a 2016 judgement, the Supreme Court has ruled that officers of private sector banks to be treated public servants under the Prevention of Corruption Act. CBI officials said that the case is arguably first of its kind case in the country where officers of private sector bank have been arrested under charges of bribery.

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Overall Comparison of Top 8 Banks in India

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HDFC Bank reports 19.6% rise in Q1 profit

Private sector lender HDFC Bank on Saturday reported a 19.6% year-on-year (y-o-y) rise in net profit to Rs.6,659 crore for the three months to June owing to a rise in net interest income (NII) and lower tax outgo.

However, its profit was lower than Rs.6,809 crore estimated by a Bloomberg poll of 15 analysts.

The bank’s net interest income – difference between interest earned and interested expended – grew 17.8% y-o-y to Rs.15,665.4 crore. Its net interest margin -- a key measure of profitability – stood at 4.3%, unchanged from the same period last year.

HDFC Bank’s asset quality improved in the June quarter with gross bad loan ratio or the percentage of bad loans to total advances declining 4 bps y-o-y to 1.36%. Its net NPA ratio was also down 10 bps to 0.33% in Q1 FY21. However, compared to the March quarter of FY20, HDFC Bank’s gross bad loan ratio was up 10 bps.

The bank said in a statement that in line with the additional regulatory package guidelines dated 23 May, the bank granted a second three-month moratorium on installments or interest, as applicable, due between 1 June and 31 August.

“For all such accounts where the moratorium is granted, the asset classification shall remain stand still during the moratorium period (i.e. the number of days past-due shall exclude the moratorium period for the purposes of determining whether an asset is non-performing)," it said.

HDFC Bank also said that it holds provisions as at 30 June 2020 against the potential impact of covid-19 based on the information available at this point in time.

“The provisions held by the bank are in excess of the RBI prescribed norms," it said, without disclosing the quantum of provisions set aside for covid-19. Its total provisions stood at ₹3,891 crore, up 49% from the same period last year.

The bank’s total advances were at Rs.10.03 trillion in Q1 of FY21, an increase of 20.9% over the same period last year. The domestic retail loans grew 7.2% and domestic wholesale loans grew 37.6%, it said, adding that the domestic loan mix between retail and wholesale was 48:52. Overseas advances constituted 3% of total advances, the bank said.

Total deposits stood at Rs.11.89 trillion, an increase of 24.6% over 30 June last year. Its current and savings account (CASA) deposits grew 26% with savings account deposits at Rs.3.27 trillion and current account deposits at Rs.1.5 trillion. The bank said its CASA deposits now comprise 40.1% of total deposits as of 30 June, 2020.

HDFC Bank’s total capital adequacy ratio (CAR) as per Basel III guidelines was at 18.9% as on 30 June, as against a regulatory requirement of 11.075%, including the capital conservation buffer of 1.875%, and an additional requirement of 0.20% for being a Domestic Systemically Important Bank (D-SIB).

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HDFC Bank Q4 profit rises 18%, asset quality improves

HDFC Bank, the country's largest lender by market cap, has reported a profit at Rs 6,927.69 crore for the quarter ended March 2020. It was lower than the average of estimates of analysts polled by CNBC-TV18 which was pegged at Rs 7,228.9 crore.

Net interest income, the difference between interest earned and interest expended, stood at Rs 15,204.06 crore for the quarter, against CNBC-TV18 poll estimates of Rs 14,972.7 crore.

The private sector lender registered a strong business growth during the quarter and continued to gained market share as deposits grew by 24.2 percent year-on-year (up 7.4 percent QoQ) to Rs 11,46,500 crore, the second best in last 15 quarters.

The bank immediately after the end of March quarter said advances aggregated to approximately Rs 9,93,000 crore as of March 2020, a growth of 21.2 percent as compared to Rs 8,19,400 crore as of March 2019 (Rs 9,36,000 crore as of December 2019).

CASA ratio stood at around 42 percent in March quarter as compared to 42.4 percent in year-ago period and 39.5 percent in previous quarter, it added.

During the quarter ended March 2020, HDFC Bank said it purchased loans aggregating Rs 5,479 crore through the direct assignment route under the home loan arrangement with parent company Housing Development Finance Corporation.

During the quarter, mutual funds increased their stake in the bank to 15.01 percent (from 14.38 percent in December quarter) and LIC also raised its stake to 3.04 percent from 2.74 percent in similar period.

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HDFC Bank Q3 profit jumps 33%, but asset quality weakens, provisions spike

Private sector lender HDFC Bank on January 18 has registered a whopping 33 percent year-on-year growth in third quarter profit, driven by other income and operating income, but asset quality weakened along with deterioration in provision coverage ratio. Lower tax cost also boosted profitability.

Profit during the quarter increased to Rs 7,416.5 crore, from Rs 5,585.85 crore in same period last year.

Net interest income, the difference between interest earned and interest expended, grew by 12.7 percent to Rs 14,172.9 crore compared to year-ago with loan growth of 19.9 percent and deposits growth of 25.2 percent YoY.

CASA deposits in Q3 grew by 21.5 percent and time deposits increased by 27.7 percent YoY, the bank said, adding the continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 140 percent, well above the regulatory requirement.

Net interest margin for the quarter remained stable at 4.2 percent, it said.

Asset quality was weak with gross non-performing assets (NPA) as a percentage of gross advances rising 4bps QoQ to 1.42 percent and net NPA climbing 6bps QoQ to 0.48 percent in quarter ended December 2019.

But excluding the portion of agricultural segment, gross NPA remained flat at 1.2 percent QoQ.

Provisions and contingencies jumped 37.6 percent YoY (12.7 percent QoQ) to Rs 3,043.56 crore during October-December quarter.

"Numbers were slightly better and yes the asset quality and provisioning coverage ratio (PCR) weakened but the NPA is fine considering the seasonality factor (agricultural NPA)," Ravikant Bhat of IndiaNivesh told CNBC-TV18.

Siddharth Purohit of SMC Institutional Equities also agreed with Bhat, saying this quarter is always seasonally weak quarter in terms of asset quality, but the bank generally recovered the same in following quarters, so overall it is very good quarter and the market will take it positively. "I am okay with numbers."

Other income (non-interest income) increased significantly to Rs 6,669.28 crore for the quarter, up 35.5 percent YoY as its main component fees and commissions grew by 24.1 percent, said the HDFC Bank in its BSE filing.

Miscellaneous income including recoveries and dividend more than doubled to Rs 940.4 crore (from Rs 402.6 crore YoY) during the quarter as recoveries included one-off item of approximately Rs 200 crore arising from resolution fo a NCLT matter, it added.

Pre-provision operating profit (PPoP) grew by 20.1 percent year-on-year to Rs 12,945.41 crore in Q3FY20. The cost-to-income ratio for the quarter at 37.9 percent improved from 38.4 percent in same period last year.

Meanwhile, Keki Mistry, Chairman and Whole-Time Director, has relinquished his office as director of the bank, the lender said.

The board of directors duly approved the re-appointment of Malay Patel as an Independent Director and Kaizad Bharucha as an Executive Director, subject to the approval of the Reserve Bank of India and the

shareholders.

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HDFC Bank Q2 profit jumps 27%,asset quality stable

Country's one of the largest private sector lender HDFC Bank has reported a healthy 26.75 percent year-on-year (YoY) growth in profit for the quarter that ended on September 2019 with stable asset quality.

Profit after tax for the quarter increased to Rs 6,345 crore against Rs 5,005.73 crore earned in the same period last year. The growth was driven by average asset growth of 15 percent and a core net interest margin for the quarter of 4.2 percent.

Net interest income during the quarter grew by 14.89 percent to Rs 13,515.04 crore YoY with loan growth at 19.5 percent as compared to same period last year.

Other income (non-interest income) increased significantly by 39.18 percent to Rs 5,588.72 crore in July-September quarter YoY while operating profit climbed 23.40 percent YoY to Rs 11,698.08 crore in Q2FY20.

Fees and commissions, which contributed more than 72 percent to other income, grew by 23 percent year-on-year to Rs 4,054.5 crore in Q2 and foreign exchange & derivatives revenue increased 31.4 percent to Rs 551.7 crore while gain on sale/ revaluation of investments stood at Rs 480.7 crore during the quarter ended September 2019 against loss of Rs 32.8 crore in the corresponding period last year.

Asset quality remained stable for the quarter with gross non-performing assets as a percentage of gross advances falling sequentially to 1.38 percent from 1.40 percent, and net NPA as a percentage of new advances declining to 0.42 percent against 0.43 percent QoQ.

HDFC Bank said provisions and contingencies increased sharply by 48.39 percent to Rs 2,700.68 crore in Q2 compared to year-ago period while the same grew by 3.33 percent QoQ.

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