HDFC Bank's Net Profit up By 17.6% in Q2FY22

Lender HDFC Bank reported a year-on-year rise of 17.6 per cent in its net profit for Q2FY22.

The bank's net profit increased to Rs 8,834.3 crore during the period under review over the quarter ended September 30, 2020.

Besides, the bank's net interest income (income earned less interest expended) rose 12.1 per cent from Rs 15,776.4 crore to Rs 17,684.4 crore for the corresponding quarter of the previous fiscal.

The lender's net revenues (net interest income plus other income) increased by 14.7 per cent, from Rs 21,868.8 crore to Rs 25,085.2 crore for the quarter ended September 30, 2020.

"Advances grew at 15.5 per cent reaching new heights driven through relationship management, digital offering and breadth of products. Core net interest margin was at 4.1 per cent. New liability relationships added during the quarter were at an all time high," HDFC Bank said in a statement.

"This continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 123 per cent, well above the regulatory requirement, which positions the bank favourably to capitalise on the opportunities that would arise as the economy gains momentum during the festive months."

In addition, the bank reported Rs 3,924.7 crore worth of provisions and contingencies, during the period under review as against Rs 3,703.5 crore for the quarter ended September 30, 2020.

"Total provisions for the current quarter included contingent provisions of approximately Rs 1,200 crore."