Other income has increased by 13 per cent to Rs 89.2 crore and operating profit is up by 16.9 percent at Rs 125.8 crore compared with corresponding period of last fiscal. The bank focuses on corporate banking, retail banking and bancassurance.
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Gross non-performing assets (NPAs) as a percentage of total loans, stood at 1.04 percent as on June 30, 2016, compared to 0.95 percent on June 30, 2015.
The Mumbai-based bank’s profit in the April-June quarter rose to Rs 3,238.91 crore against Rs 2,695.72 crore in the same period a year ago. In banks, provisions are made to cover for loans that have turned bad. The non-interest revenue of the bank also grew by 14% to Rs 2,806.61 crore from Rs 2,461.91 crore during the same period. “So, that clearly sets the tone for the topline”, Sukthankar said.
On a stand-alone basis, the bank reported a net profit of Rs.741.97 crore compared to Rs.189.78 crore a year ago. Net non-performing assets stood at 0.3 per cent of net advances as of June 30.
The bank reported a net interest income-the difference between interest earned and interest expended-of Rs 7,781.4 crore, up by 21.8 percent from the quarter a year ago.
Net interest margin (NIM) for Q1FY17 improved to 4.37 per cent from 4.18 per cent in Q1FY16.
It did not sell any bad loans to asset reconstruction companies in the quarter. Other income rose 20.17% to Rs.1,079.39 crore from Rs.898.20 crore a year ago.
Total deposits for HDFC Bank rose by 18.5 percent year-on-year to Rs 573,755 crore as on June 30, 2016. According to International Business Times, the bank’s capital adequacy ratio, which measures a bank’s capital as against its risks and liabilities, was 15.5% this quarter.
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Kotak Mahindra Bank stock was trading at Rs 765.95 on BSE, down 2.08 per cent from the previous close.
