Performance viewed to have surpassed analysts’ expectations
MUMBAI/October 17: HDFC Bank, the country’s largest private sector bank in terms of market capitalistion, posted a standalone profit of Rs7,513.11 crore for the quarter ending September 30, 2020 against Rs6,344.99 crore a year ago, representing a growth of 18.4 per cent.
The performance has been viewed as one that has surpassed the analysts’ expectation, more so given the unfavourable market conditions induced by the unrelenting COVID 19.
This quarter will be marked in the history of the bank as the last one under the illustrious leader of the bank, Aditya Puri (seen in the picture). Puri served as the MD of the bank after assuming the position in 1994 with a vision to create “World Class Indian Bank’.
Having served the bank as its MD for the past 26 years, Puri now enjoys the distinction of being the longest serving head of any private sector bank in the country
During the quarter under review, the HDFC Bank’s asset quality improved with the gross non-performing assets (NPAs) to gross advances declining to 1.08 per cent from 1.36 per cent on a sequential basis.
NPAs on absolute terms fell to Rs11,304.60 crore from Rs13,773.46 crore in the same period a year ago. This quarter’s performance was also backed by a handsome ‘other income’ to the tune of Rs6092.45 crore compared with Rs5588.72 crore the bank reported a year earlier.
During the said period, provisions and contingencies rose to Rs3,703.50 crore (consisting of specific loan loss provisions of Rs 1,240.6 crore and general and other provisions of Rs2,462.9 crore) against Rs2,700.68 crore.
The bank disclosed that total provisions for the second quarter included contingent provisions of around Rs2,300 crore for “proforma” NPA and additional contingent provisions to make the balance sheet more resilient.
The Supreme Court had, through an interim order on September 3, directed that accounts, which were not declared NPA till August 31 shall not be declared so until further orders.