HDFC Bank’s quarterly annual profit rise by 18% on loan growth
On Saturday, HDFC Bank reported a net profit of Rs 8,176 crore for the quarter ended March 2021. This is an increase of 18% over Rs 6,927 crore in the corresponding quarter last year. The profit for the entire year was also up by 18% at Rs 31,116 crore as compared to Rs 26,257 crore in the previous year.
The bank’s consolidated net profit for the quarter ended March 31, 2021, was Rs 8,434 crore, up by 15.8% as compared to the previous year.
Total deposits also increased by 16% to Rs 13,35,060 crore from Rs 11,47,502 crore last year. Advances rose by 14% to Rs 11,32,836 crore from Rs 9,93,702 crore in March 2020.
Growth in advances was because of an increase in business loans. Retail loans grew only by 8%, that too on account of home loans, Kisan gold cards, and a rise in credit card outstanding. Auto loans were slothful and the bank withered its commercial vehicle and two-wheeler loan portfolio during the year. Further, the credit card outstanding grew by 12% during the year to Rs 57,575 crore despite RBI barring the bank from issuing new cards in the fourth quarter.
Furthermore, the profits were hit by a 24% increase in provisioning to Rs 4693 crore. The bank’s finance subsidiary HDB Financial Services, however, reported a drop in net profit to Rs 502 crore for the year ended March 2021 from Rs 1036 crore for the year ended March 2020.
Gross non-performing assets (NPAs) were at 1.32% of gross advances as of March 31, 2021, as against 1.26% as of March 31, 2020. Net non-performing assets were at 0.40% of net advances as of March 31, 2021.