HDFC Bank Q1 net up 21%, bad loans rise marginally

HDFC Bank, the country's second largest private sector lender, today reported a 21% rise in net profit to Rs 2,695.7 crore on the back of an increase in net interest income and robust other income.

Net interest income, the difference between interest earned and interest expended, increased by 23.5% to Rs 6,389 crore in the quarter ended June as compared to Rs 5,171.6 crore in the same period a year ago.

Other income, which includes fees, commissions etc, grew by 33% to Rs 2,461.9 crore in the April-June quarter compared to Rs 1,850.6 crore in the corresponding quarter last year.

The Gross Non Performing Assets (NPA) for the June quarter rose sequentially but improved on a year-on-year basis. Gross NPA as a percentage of total loans was at 0.95% compared to 1.07% in the year-ago period. This was a marginal increase from the March quarter where it stood at 0.93%.

Similarly, Net NPA to gross advances at the end of June 30, 2015 improved to 0.27% compared to 0.32% in the same quarter a year ago. But it registered a slight increase of 0.02% on a sequential basis.

At the same time, provisions and contingencies for the quarter ended June 30, 2015 also increased to Rs 728 crore (consisting of specific loan loss provisions Rs 557.5 crore, general provisions Rs 96 crore, floating provisions Rs 65 crore and other provisions Rs 9.5 crore) as against Rs 482.8 crore for the corresponding quarter ended June 30, 2014.

Net Interest Margin, a key indicator of bank's profitability stood at 4.3% for the quarter ended June. The lender continues to remain well capitalised with a Capital Adequacy Ratio (CAR) of 15.7% at the end of June quarter.

HDFC Bank