HDFC Bank profit rises 30% to Rs 11,952 crore in June quarter, beats estimates

The country's largest private sector lender - HDFC Bank - on Monday reported higher than anticipated net profit of Rs 11,952 crore in first quarter of current financial year on the back of sharp decline in provisioning for bad loans as its asset quality improved.

HDFC Bank's net profit rose 30 per cent annually from Rs 9,195.99 crore during the same period last year. Analysts polled by Refinitiv had pegged the bank to report net profit of Rs  11,497 crore, according to news agency Reuters.

Following the earnings announcement, HDFC Bank shares rose as much as 1.5 per cent to hit an intraday high of Rs 1,670. This is the first earnings announcement by HDFC Bank after its reverse merger with mortgage lender HDFC Ltd.

HDFC Bank margin and NII

HDFC Bank's net interest income, or core lending income, rose 21.1 per cent to Rs 23,599 crore. Net interest margin was at 4.1 per cent, the bank said in a press release.

The lender saw advances rise 15.8 per cent during the quarter, while deposits rose at a faster pace of 19.2 per cent.

Asset quality was largely stable, with gross non-performing assets (NPA) ratio slipping slightly to 1.17 per cent from 1.12 per cent in the prior quarter. The figure stood at 1.28 per cent a year ago.

Provisions and contingencies, or the funds set aside to cover loan losses, slipped 10.3 per cent to 28.6 billion rupees.

Shares of the lender rose as much as 1 per cent after the results.

(With Reuters inputs)