HDFC Bank's Q1 net profit surges 30% on improved asset quality, higher core income

economictimes.indiatimes.com:

HDFC Bank Monday beat D-Street estimates to register a 30% on-year rise in its net profit for the June quarter, the last three-month period for which India's most-valued lender reported standalone performance, buttressed by lower provisions toward doubtful advances and higher core income. Profit climbed to ₹11,951.7 crore, beating estimates of ₹11,375.1 crore drawn from analysts polled by Bloomberg. The bank, which merged with its mortgage-lending parent HDFC from July 1, had posted profits of ₹9,196 crore in the same period last year.

ETIG data showed that the bank had last posted a 30% profit growth in December 2019. HDFC Bank, now with the highest weighting on the Nifty because of the stock's free float, will report consolidated performance data from the September quarter. The combined entity posted a 13% rise in loans as of June 30 to ₹22.45 lakh crore, said a July 5 exchange filing.

The lender's core income, or net interest income earned on advances after deducting the cost of funds, expanded more than a fifth on year to ₹23,599 crore at the end of the June quarter. «The quarter we operated in had a stronger than expected economic tailwind with a stronger than expected GDP growth. Payment systems indicate that business activity continues to be robust,» said Srinivasan Vaidyanathan, chief financial officer, HDFC Bank.