The country’s largest private lender, HDFC Bank, posted a 17.6 per cent rise in net profit at Rs 8,834.3 crore in the second quarter ended September 30, 2021, on robust growth in income streams including interest and fees and commissions.

The lender had posted a net profit of Rs 7,513.1 crore in the quarter ended September 2020 (Q2FY21). Sequentially, its profit was up about 14 per cent from Rs 7,729.6 crore in June 2021 (Q1FY22).

Net interest income (NII), interest earned less interest expended, in Q2FY22 rose by 12.1 per cent, year-on-year, to Rs 17,684.4 crore from Rs 15,776.4 crore a year ago. The Net Interest Margin (NIM) was stable at 4.1 per cent in Q2FY22. It had same NIM level in Q2FY21 and Q1FY22.

The Bank in filing with BSE said the non-interest income showed a strong pace of growth at 21.5 per cent to Rs 7,400.8 crore in Q2FY22 over Rs 6,092.5 crore in the same quarter last year. The fees & commissions grew to Rs 4,945.9 crore from Rs 3,940.3 crore in Q2FY21. The foreign exchange & derivatives revenue were up at 867.3 crore from Rs 560.4 crore a year ago.

However, its gains on sale/revaluation of investments fell sharply to Rs 675.5 crore in Q2FY22 from Rs 1,016.2 crore a year ago. The miscellaneous income, including recoveries and dividend, rose to Rs 912.1 crore from Rs 575.6 crore.

HDFC Bank’s provisions and contingencies rose marginally in Q2FY22 to Rs 3,924.7 crore as against Rs 3,703.5 crore in Q2FY21, the lender added.

Within this, the specific loan loss provisions grew sharply to Rs 2,286.4 crore from ₹ 1,240.6 crore. However, the general and other provisions fell to Rs 1,638.3 crore from Rs 2,462.9 crore.

Asset quality showed stability with gross non-performing assets (NPAs) at 1.35 per cent in Q2FY22, down from 1.37 per cent on a proforma basis a year ago. In the second quarter last financial year (FY21), the Supreme Court had imposed an interim stay on classifying overdue accounts as NPA amid first wave of the pandemic.

Its net NPAs were up at 0.40 per cent in September 2021, from 0.17 per cent a year ago. It held floating provisions of Rs 1,451 crore and contingent provisions of Rs 7,756 crore as on September 30, 2021.

Total deposits were up by 14.4 per cent at Rs 14.06 trillion over September 30, 2020. The share of low cost-current account and savings accounts (CASA )–was 46.8 per cent of total deposits as of September 30, 2021.

Total advances grew 15.5 per cent to 11.98 trillion. The retail loans grew by 12.9 per cent, commercial and rural banking loans grew by 27.6 per cent.

The Capital Adequacy Ratio (CAR) was at 20 per cent as on September 30, 2021, much above a regulatory requirement of 11.07 per cent.

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