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23% jump in NII & 60% surge in provisions: What do HDFC Bank's numbers say?

The board declared a special interim dividend of Rs 5 per equity share of Rs 2.

ETMarkets.com|
Updated: Jul 20, 2019, 05.09 PM IST
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MUMBAI: HDFC Bank on Saturday posted a 21 per cent year-on-year (YoY) rise in standalone net profit at Rs 5,568.16 crore for the quarter ended June 2019.

The bank's profit figure stood at Rs 4,601.44 crore in the same quarter last year.

Here are the top takeaways from the private sector lender's June quarter results:

Strong NII: The net interest income (interest earned less interest expended) for the June quarter grew by 22.9 per cent to Rs 13,294.30 crore on YoY basis, driven by asset growth and a rise of 4.3 per cent in core net interest margin for the quarter.

Other income rises too: Other income (non-interest revenue) at Rs 4,970.3 crore was 27.2 per cent of the net revenues for the quarter ended June 30. It grew by 30.2 per cent over Rs 3,818.1 crore reported in the corresponding quarter a year ago.

The four components of other income were -- fees & commissions of Rs 3,551.6 crore, foreign exchange and derivatives revenue of Rs 576.7 crore, gain on-revaluation/sale of investments of Rs 212 crore and miscellaneous income, including recoveries and dividend, of Rs 630 crore.

Provisions and NPAs jump: Provisions and contingencies for the said quarter rose 60.4 per cent to Rs 2,613.7 crore as against Rs 1,629.4 crore for the same quarter a year ago. Gross non-performing assets stood at 1.40 per cent of gross advances as on June 30 as against 1.33 per cent a year ago.

Balance Sheet: Total balance sheet size as of June 30, 2019 was Rs 1,265,253 crore as against Rs 1,080,409 crore in the same period last year.

Total deposits were at Rs 954,554 crore, an increase of 18.5 per cent YoY. CASA deposits grew by 12.8 per cent with savings account deposits at Rs 253,338 crore and current account deposits at Rs 125,663 crore. The bank’s continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 126 per cent, well above the regulatory requirement.

Capital Adequacy: Total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 16.9 per cent for the June quarter as against a regulatory requirement of 11.075 per cent. The figure stood at 14.6 per cent on June 30, 2018.

Dividend: The Board of Directors has declared a special interim dividend of Rs 5 per equity share of Rs 2.

Network: As of June 30, 2019, the bank’s distribution network was at 5,130 banking outlets and 13,395 ATMs across 2,764 cities/towns as against 4,804 banking outlets and 12,808 ATMs across 2,700 cities/towns a year ago. Number of employees were at 104,154 at the end of June quarter against 89,550 in the same quarter last year.
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