HDFC Bank Q2 net profit up 17.5% year-on-year

MUMBAI: HDFC Bank on Saturday reported a year-on-year growth of 17.5% in net profit for the second quarter of FY12. Bank’s net profit was 8,834.31 crore for the quarter ended Sept. 7,513.11 crore during the same period last year.

Net interest income, or principal income, up 12% year-over-year 17,684 crores. Other income also grew 21.5% compared to a year ago 7,401 crore.

The bank’s asset quality improved on a sequential basis, with gross non-performing assets ratio at 1.35%, as against 1.47% on June 30. The net NPA ratio also fell 8 basis points quarter-on-quarter to 0.4%.

Total provisions for the bank grew marginally at 6% year-on-year 3,925 crores.

As per the quarterly data shared by the bank, Retail loans worth Rs 5,647.5 crore were restructured under the Reserve Bank of India framework for Covid-affected borrowers, which is about a quarter or so. 1,283 crores became non-performing as of 30 September. HDFC Bank also wrote off retail loans 808.5 crore during the second quarter.

The total loan restructured under the special window of RBI was 7,829.48 crore, out of which, 1,687 crore became NPAs and 856.7 crores were written off.

The level of reengineering implemented under Resolution Framework 2.0 was very high. 14,100 crore towards personal loan, 1500 crore personal business loan and Rs 1,780 crore small business loan. Together, the bank has restructured and made 1.45% of the advances under this framework 2000 crore for this.

HDFC Bank’s total advances up 15.4 percent year-on-year 11.98 lakh crore. Of this, retail advances grew by 12.9 per cent, commercial and rural banking credit by 27.6%, while wholesale credit grew by 6% over a year ago. Total deposits up 14.4% y-o-y 14.06 lakh crore,

Current account savings account deposits grew by 28.7% as compared to a year ago, where CASA deposits now account for 46.8% of total deposits.

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