HDFC Bank Quarterly Results for Q2 (2021-22),Profit, Earnings, News & More

HDFC Bank Quarterly Results for Q2 (2021-22),Profit, Earnings, News & More

Last updated: 17 Oct, 2021 | 04:07 pm

HDFC Bank Quarterly Results for Q2 (2021-22),Profit, Earnings, News & More

Profit beats estimates: The Net profit grew 17.6% year-on-year to Rs 8,834.30 crore beating street expectations. Analysts had earlier anticipated a net profit of about Rs 8,183 crore. Last year, during the same period, the bank reported a net profit of Rs 7,513 crore. Sequentially, the profit increased by 18%. The bank was able to post a higher profit on the back of strong loan growth and a healthy rise in Net Interest Income.

Net interest income rises: A bank’s primary business is to borrow money and lend the same at a rate higher than the rate at which they borrowed. The income generated from this differential is known as net interest income. This is an extremely important number to truly find out as to how much a bank is earning from its core operations. Net interest income for HDFC Bank grew 12.1% YoY to Rs 17,684.40 crore. Last year for the quarter ending September, the net income was Rs 15,776 crore. The analyst had predicted a net income of Rs 17,528 crore.  The core net interest margin was at 4.1%.

Other Income: The non-interest income showed a strong pace of growth at 21.5% to Rs 7,400.8 crore over Rs 6,092.5 crore in the same quarter last year. The fees & commissions grew to Rs 4,945.9 crore while the foreign exchange & derivatives revenue was up at 867.3 crore. However, its gains on sale/revaluation of investments fell sharply to Rs 675.5 crore from Rs 1,016.2 crore a year ago. The miscellaneous income, including recoveries and dividend, rose to Rs 912.1 crore from Rs 575.6 crore.

HDFC bank Q2 earnings highlights:

Asset quality improves: The bank’s asset quality improved with the gross NPA ratio reducing to 1.35% of total advances as against 1.47% in last quarter. Last year, during the same time, the gross NPA was 1.37%. Net NPA was at 0.40% of net advances for the quarter ended Sep 21. 

Provisions: The provisions and contingencies for the Jul-Sep quarter increased to Rs 3,924.70 crore compared to Rs 3,703.50 crore in the same period a year ago. Sequentially the provisions and contingencies have come down significantly from Rs 4,830 crore. Total provisions for the quarter included Rs 1200 crore worth of contingent provisions. Provision coverage ratio improved further to 70.9 percent in the second quarter of FY22, from 67.9 percent in June quarter.

Deposits and Advances: CASA capital is the cheapest source of capital for banks. The higher the number, the more profit a bank can earn. The CASA (Current and Saving Account) deposit grew by 28.7% on-year and stood at Rs 14.6 lakh crore in Jul-Sep 21 quarter. The CASA deposits constitute 46.8% of the bank's total deposits. Total advances grew 15.5% to 11.98 lakh crore. The retail loans grew by 12.9%, commercial and rural banking loans grew by 27.6%.

HDFC Bank Q2 Results Review:

HDFC Bank has reported a strong set of numbers for the quarter ended September with topline and bottomline beating estimates. The healthy growth in Deposits and Advances has resulted in a strong overall growth. The asset quality of the bank has also seen an improvement.The Capital Adequacy Ratio (CAR) was at 20% as on September 30, 2021, much above a regulatory requirement of 11.07%.

The lender's retail push coincides with a recent removal of a ban by the Reserve Bank of India on issuing new credit cards. However, the central bank has retained its curb on launching new online products by the bank after repeated technology glitches. The current economic recovery is helping the banking sector as seen by the strong set of numbers by HDFC Bank in the quarter. Shares of HDFC Bank on Thursday closed 2.86% higher at ₹1,685.90 on BSE.

We are a SEBI registered investement advisor
Mutual Funds watchlist
aditya birla sun life flexi cap fund growth direct plan|ABSL low duration fund direct growth|axis bluechip fund direct growth|axis capital builder fund series 4|axis balanced advantage fund direct growth|axis equity saver fund direct growth|axis multicap fund direct growth|axis global innovation fund of fund direct growth|axis long term equity fund growth NAV|axis quant fund direct growth|axis small cap fund direct growth|axis value fund direct growth|baroda dynamic equity fund direct growth|BOI AXA bluechip fund|canara robeco flexi cap fund direct growth|canara robeco small cap fund direct growth|canara robeco value fund direct growth|DSP quant fund direct|franklin india smaller companies fund direct growth|HDFC arbitrage fund direct growth|HDFC balanced advantage fund direct growth|HDFC developed world index fund NAV|HDFC flexi cap fund direct growth|HDFC housing opportunities fund direct growth|HDFC hybrid equity fund direct growth|HDFC nifty 50 index fund|HDFC index fund sensex plan|HDFC mid cap opportunities direct plan growth|HDFC multi asset fund direct growth|HDFC small cap fund direct growth|HDFC top 100 fund direct growth|HSBC midcap fund direct growth|ICICI prudential balanced advantage fund|ICICI bluechip fund direct growth NAV|ICICI prudential commodities fund direct plan growth|ICICI nasdaq 100 fund direct growth|ICICI nifty next 50 index fund direct growth|ICICI small cap fund direct growth|ICICI prudential technology direct plan growth calculator|ICICI ultra short term fund direct growth|IDBI india top 100 equity fund direct growth|IDBI small cap fund direct growth|idfc us equity fund of fund direct growth|kotak short term fund direct growth|kotak emerging equity fund direct growth|kotak multicap fund direct growth|kotak global innovation fund of fund NAV|kotak gold fund direct growth|kotak savings fund direct growth|kotak small cap fund direct growth|L&T emerging businesses fund direct growth|mirae asset large cap fund direct growth|mirae asset midcap fund|motilal oswal nasdaq 100 fund of fund|navi nifty 50 index fund direct growth|nippon india banking and financial services fund direct growth|nippon banking fund direct|nippon india flexi cap fund NAV|nippon india large cap fund direct growth|nippon india pharma fund direct growth|nippon india small cap fund direct growth|PGIM small cap fund direct growth|quant flexi cap fund direct growth|quant infrastructure fund direct growth|quant tax plan direct plan growth|SBI bluechip fund direct growth|SBI corporate bond fund direct growth|SBI equity minimum variance fund direct growth|SBI flexi cap fund|SBI magnum children's benefit fund investment direct plan|SBI nifty index fund direct growth|SBI small cap fund direct growth|SBI technology opportunities fund direct growth|tata banking and financial services fund direct plan growth|tata business cycle fund|tata technology fund direct growth|tata equity pe fund direct growth|tata ethical fund direct growth NAV|tata focused fund direct growth|tata index fund nifty direct plan|tata india tax savings fund direct plan growth|UTI focused equity fund direct growth|UTI nifty index fund direct growth NAV|UTI nifty 50 index fund direct growth