Analysts had estimated the first quarter NII at Rs 17,634 crore. Country's largest private sector lender HDFC Bank on July 17 reported a 16.1 percent year-on-year growth in standalone profit at Rs 7,729.64 crore for the quarter ended June 2021 despite elevated provisions. Gross non-performing assets rose 15 basis points sequentially to 1.47% of gross advances. Net NPA ratio for the first quarter was at 0.48%, as compared with 0.4% on March 31, 2021. Total provisions rose 24% year-on-year to Rs 4,831 crore, according to the bank's disclosures. "The second wave of Covid-19 disrupted business activities for close to two thirds of the quarter, leading to a decrease in efficiency in collection efforts and a higher level of provisions," the bank said in a statement with its results.
Provisions and contingencies for the quarter included specific loan loss provisions of Rs 4,219.70 crore and general and other provisions of Rs 611.10 crore. Gross non-performing asset (NPA) came in at 1.47 per cent compared with 1.32 per cent in the March quarter, and 1.36 per cent in the year-ago quarter.
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As of June 30, the bank said that it had restructured loans worth Rs 7,800 crore, under the Reserve Bank of India's one time restructuring scheme. This included Rs 5,457 crore worth retail loans, and Rs 1,735 crore worth corporate loans. The bank also restructured loans worth Rs 608 crore to other borrowers under the scheme. The disruptions from the Covid-19 pandemic affected retail loan originations, sale of third party products and card spends, which affected business volumes and revenue, the bank said. The lower business volumes, coupled with higher slippages, resulted in lower revenues, as well as enhanced levels of provisioning. Pre-provision operating profit (PPoP) for the quarter rose 18 per cent to Rs 15,137 crore. The liquidity coverage ratio stood at 126 per cent, well above the regulatory requirement.The balance Sheet size of the bank at the end of the quarter stood at Rs 17,53,941 crore as of June 30, up 13.5 per cent over Rs 12,45,103 crore as of June 30, 2020. Capital adequacy ratio as per Basel III guidelines stood at 19.1 per cent as of June 30 compared with 18.9 per cent in the year-ago quarter.