HDFC Bank Q2 net profits at Rs.7711 crore continued growth trend

HDFC Bank announced total revenues of Rs.38,439 for the Sep-20 quarter. The Operating profits for the quarter were up by 8.14% on a Sequential basis and up 18.19% on a yoy basis at Rs.14,798 crore.

Oct 17, 2020 04:10 IST India Infoline News Service

HDFC Bank announced total revenues of Rs.38,439 for the Sep-20 quarter. The Operating profits for the quarter were up by 8.14% on a Sequential basis and up 18.19% on a yoy basis at Rs.14,798 crore. The operating margins were higher at 38.5 % in the September quarter.

Above all, the bank in the midst of very tough business conditions and rising chances of delinquency, has reported a sharp fall in gross NPAs to 1.08% and a sharp fall in net NPAs to 0.19%. The operating margins at 38.5% and the net profit margins at 20.06% were sharply higher compared to the previous year.


Here are the financial highlights


Particulars Sep-20 Quarter Growth (YOY) Growth (QOQ)
Total Revenues Rs38,439cr +6.39% +4.74%
Operating Profit Rs14,798cr +18.19% +8.14%
Net Profits Rs7,711cr +16.16% +11.32%
Key Ratios Sep-20 Quarter Sep-19 Quarter Jun-20 Quarter
Diluted EPS Rs14.00 Rs12.00 Rs12.60
Operating Margins 38.50% 34.65% 37.29%
Net Profit Margin 20.06% 18.37% 18.88%
Gross NPA (%) 1.08% 1.38% 1.36%
Net NPA (%) 0.19% 0.42% 0.33%
Return on Assets 0.48% 0.50% 0.44%


Key takeaways from the Sep-20 quarter results

  • After nearly 20 quarters of consistent growth in top line and profits, the bank has managed to maintain growth in top line at 6.4% and net profits at 16.16% on a yoy basis. This came on the back of sharp expansion in the overall business.
  • The bank has managed its gross NPAs in a tight leash at 1.08%, sharply lower than 1.4% levels where its gross NPAs had stabilized in the recent past. This is a big positive shift in asset quality. Net NPAs at 0.19% indicates that most losses are provided for.
  • For the latest quarter also, retail banking continued to dominate the revenues followed by wholesale banking and treasury in that order. For the quarter, the net interest income or NII was up 16.7% at Rs.15,776 crore.
  • The boost to the net interest income was driven by two key factors. It was driven by 21.5% growth in assets during the quarter and core net interest margin or NIM at an attractive level of 4.1% for the quarter.
  • For the quarter, the bank made provisions and contingencies of Rs.3704 crore towards specific and general purposes. Its core credit cost ratio has also come down from 1.08% to 0.91%.
  • The total deposit base grew at 20% but that was largely driven by 27% growth in CASA deposits in the Sep quarter. Capital adequacy at 19.1% is nearly 150 bps higher than last year and among the best in the industry.

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