HDFC Bank Slumps Over 4% After Quarterly Earnings

Shares of HDFC Bank were down more than 4.6 per cent after the country’s largest private sector lender posted a net profit of Rs 10,055 crore for the March quarter. 

A jump in profit came on the back of sharply lower provisioning for non-performing assets (NPAs). Its provisions declined 29 per cent annually to Rs 3,312 crore from Rs 4,694 crore in the year-ago period.

At 1:26 pm, stocks of HDFC bank were down 4.3 per cent at Rs 1,400. 

Notably, HDFC Bank's net interest income, or the difference between interest earned on loans and interest expended on deposits advanced 10 per cent to Rs 18,872.74 crore from Rs 17,120 crore in the same quarter last year.

The bank's asset quality also witnessed an improvement as its gross non-performing assets as a percentage of total advances came in at 1.17 per cent in the March quarter compared with 1.26 per cent in the previous quarter. In absolute terms, gross NPAs stood at Rs 16,141 crore versus 16,013.55 crore.

Meanwhile, HDFC Bank on Saturday said it will raise up to Rs 50,000 crore in the next one year by issuing bonds aimed at financing infrastructure and affordable housing loan requirements of the customers. The bank also re-appointed Renu Karnad as a non-executive director on the board of the bank for a period of five years with effect from September 3, 2022.