Analysts had expected the bank to report a 23 per cent year-on-year rise in net profit to Rs. 8,550.3 crore and a near 12 per cent rise in net interest income to Rs 17,000 crore.
“Given that the current ‘second wave’ has significantly increased the number of Covid-19 cases in India and uncertainty remains, the board has considered it prudent to currently not propose dividend for the financial year ended March 31, 2021,” the bank said.
For the quarter, the lender’s gross non-performing loans ratio stood at 1.32 per cent as against 1.38 per cent on a proforma basis in the previous quarter. Brokerage firm
Markets expected the lender to report a gross NPA ratio of 1.4 per cent.
The private sector lender also reported a net NPA ratio of 0.4 per cent for the quarter. The lender’s provisions in the quarter rose 24 per cent on a year-on-year basis to Rs 4,693.7 crore.
HDFC Bank’s pre-provision operating profit in the quarter stood at Rs 15,532.8 crore, up 20 per cent. Emkay Global has expected HDFC Bank to report a 13.8 per cent year-on-year growth in pre-provisioning operating profit at Rs 14,747 crore.
The non-interest bearing business of the bank had a stellar quarter as revenues grew 26 per cent on a year-on-year basis to Rs 7,593.9 crore.
The lender’s subsidiary HDB Financial Services reported a decline in net profit to Rs 284.6 crore in the reported quarter from Rs 341.7 crore in the year-ago quarter. The non-bank lender’s gross NPA ratio improved to 3.9 per cent from 5.9 per cent in the previous quarter.
HDB Financial’s net interest income in the quarter grew 15.4 per cent on-year to Rs 1,252 crore.
Shares of HDFC Bank ended flat at Rs 1,430.9 on the National Stock Exchange on Friday.