HDFC Bank's Q1 net rises by 20.3 percent

Mumbai, Jul 24: Private Sector Lender,HDFC Bank has reported a 20.2 percent rise in net profit at Rs 3,894 crore for the quarter ended June 30, 2017 as compared with net profit of Rs 3,239 crore profit in the year-ago quarter. The Bank’s total income for the quarter ended June 30, 2017 grew by 14.81 percent to Rs 22,185.4 crore compared with total income of ' Rs 19,322.6 crore for the quarter ended June 30, 2016. Net revenues (net interest income plus other income) increased by 21.7 Percent to Rs 12,887.4 crore for the quarter ended June 30, 2017 from Rs 10,588.1 crore in the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended June 30, 2017 grew by 20.4 percent to Rs 9,370.7 crore, from Rs 7,781.4 crore for the quarter ended June 30, 2016, driven by average loan growth of 20.7 percentand a core net interest margin for the quarter of 4.4 percent. Other income (non-interest revenue) at Rs 3,516.7 crore was 27.3 percent of the net revenues for the quarter ended June 30, 2017 and grew by 25.3 percent over Rs 2,806.6 crore in the corresponding quarter ended June 30, 2016. The four components of other income for the quarter ended June 30, 2017 were fees & commissions of Rs 2,578.1 crore as compared to Rs 1,977.9 crore in the corresponding quarter of the previous year) foreign exchange & derivatives revenue of Rs 296.8 crore (Rs 314.5 crore for the corresponding quarter of the previous year), gain on revaluation / sale of investments of Rs 331.4 crore (Rs 276.9 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveries and dividend, of Rs 310.3 crore ( Rs 237.4 crore for the corresponding quarter of the previous year). Operating expenses for the quarter ended June 30, 2017 were ` Rs 5,367.5 crore, an increase of 12.6 percent over Rs 4,768.9 crore during the corresponding quarter of the previous year. The core cost-to-income ratio for the quarter was at 42.7 Percent as against 46.2% for the corresponding quarter ended June 30, 2016. Provisions and contingencies for the quarter ended June 30, 2017 were Rs 1,558.8 crore (consisting of specific loan loss provisions `1,343.2 crore, general provisions Rs 206.3 crore and other provisions Rs 9.3 crore) as against Rs 866.7 crore (consisting of specific loan loss provisions Rs 832.3 crore, general provisions of Rs 1.1 crore and other provisions Rs 33.3 crore) for the corresponding quarter ended June 30, 2016. General provisions include additional provisions of Rs 121.1 crore for standard advances to stressed sectors. Profit before tax was up 20.4 percent to Rs 5,961.2 crore. After providing Rs 2,067.3 crore for taxation, the Bank earned a net profit of Rs 3,893.8 crore, an increase of 20.2 percent over the quarter ended June 30, 2016. Total deposits as of June 30, 2017 were Rs 671,376 crore, an increase of 17.0 percent over June 30, 2016. CASA deposits saw healthy growth with savings account deposits growing by 26.5% over the previous year to reach Rs 193,105 crore and current account deposits growing by 34.1 percent over the previous year to reach ` Rs 102,030 crore. Time deposits were at Rs 376,241 crore, an increase of 9.1 percent over the previous year, resulting in CASA deposits comprising 44.0 percent of total deposits as on June 30, 2017. Advances as of June 30, 2017 were Rs 580,976 crore, an increase of 23.4% over June 30, 2016. As per regulatory [Basel 2] segment classification, retail loans grew by 21.9 percent and wholesale loans grew by 25.5 percent (as per internal business classification, the growth was 19.2 percent and 33.8 percent respectively). The loan mix between retail:wholesale was 54:46. UNI