HDFC Bank reported a good earnings set for the three months that ended June of the current financial year. Net profit soared 35 per cent to Rs 16,175 crores from Rs 11,952 crore during April-June quarter a year ago. Sequentially, though, profit fell 2 per cent from Rs 16,512 crores reported in Q4 FY24.
The consolidated profit for the bank in the said quarter stood at Rs 16,474.85 crore. Interest income increased by 50.3 per cent YoY to Rs 73,033.14 crore during the said quarter, as against Rs 48,586.81 crore in Q1 23-24. The Net Interest Income was at Rs 29,837.1 crore for the said period.
However, the asset quality indicators at HDFC Bank were slightly stressed, given the strong performance in all other indicators of finance. The gross NPA ratio rose to 1.33 percent of total loans as of June 30, from 1.24 percent in the March-ended quarter and 1.17 percent a year ago, implying its asset quality had deteriorated. Net nonperforming assets also rose to 0.39 percent as of June 30 from 0.33 percent as of March 31 and 0.30 percent as of June 30, 2023. All of these numbers continue to indicate pressure on the management of asset quality, notwithstanding its strong performance on earnings.
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