Country's second largest private sector lender HDFC Bank today announced its results for the quarter and half year ended September 30, 2019. According to the filing submitted with the BSE, the bank reported to have earned a net profit of Rs 6,345 crore, an increase of 26.8%, after providing Rs 2,652.4 crore for taxation, for the quarter. The growth is stated to be driven by average asset growth of 15 percent and a core net interest margin for the quarter of 4.2 percent.

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According to the HDFC Bank statement, the bank's total income for the Q2 FY 2019-20 at Rs 33,755.0 crore grew by 19.6% from Rs 28,215.2 crore for the same quarter in FY 2018. Net revenues (net interest income plus other income) increased by 21.1 % to Rs 19,103.8 crore for the quarter ended September 30, 2019 from Rs 15,779.0 crore in the corresponding quarter of the previous year.  

Net interest income (interest earned less interest expended) for the quarter ended September 30, 2019 grew to Rs 13,515.0 crore from Rs 11,763.4 crore for the quarter ended September 30, 2018, driven by average asset growth of 15.0% and a core net interest margin for the quarter of 4.2%.

Other income (non-interest revenue) at Rs 5,588.7 crore was 29.3% of the net revenues for the quarter ended September 30, 2019 and grew by 39.2% over Rs 4,015.6 crore in the corresponding quarter ended September 30, 2018. The four components of other income for the quarter ended September 30, 2019 were fees & commissions of Rs 4,054.5 crore (Rs 3,295.6 crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of Rs 551.7 crore (Rs 419.8 crore for the corresponding quarter of the previous year), gain on sale/ revaluation of investments of Rs 480.7 crore (loss of Rs 32.8 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveries and dividend, of Rs 502.0 crore (Rs 333.0 crore for the corresponding quarter of the previous year).

Operating expenses for the quarter ended September 30, 2019 were Rs 7,405.7 crore, an increase of 17.6% over Rs 6,299.1 crore during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 38.8% as against 39.9% for the corresponding quarter ended September 30, 2018.

Pre-provision Operating Profit (PPOP) at Rs 11,698.1 crore grew by 23.4% over the corresponding quarter of the previous year. Provisions and contingencies for the quarter ended September 30, 2019 were Rs 2,700.7 crore (consisting of specific loan loss provisions of Rs 2,038.0 crore and general provisions and other provisions of Rs 662.7 crore) as against Rs 1,820.0 crore (consisting of specific loan loss provisions of Rs 1,572.5 crore and general provisions and other provisions of Rs 247.5 crore) for the quarter ended September 30, 2018. 

Core Profit' before tax (PPOP less specific loan loss provisions) for the quarter ended September 30, 2019 was up 22.2%. After providing for general and other provisions, the PST for the quarter ended September 30, 2019 grew to Rs 8,997.4 crore. 

As of September 30, 2019, the Bank's distribution network was at 5,314 banking outlets and 13,514 ATMs across 2,768 cities/ towns as against 4,825 banking outlets and 13,018 ATMs across 2,718 cities / towns as of September 30, 2018. 

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Of the total banking outlets, 52% are in semi-urban and rural areas. Number of employees were at 111,208 as of September 30, 2019 (as against 94,907 as of September 30, 2018).