Net Interest Income (NII) --- the difference between interest earned through lending and interest paid to depositors --- of the Bank saw a 12.6 per cent rise to Rs 17,120 crore in the reporting quarter, compared to Rs 15,204 crore in the same period last year.
The lender said the coronavirus-induced slowdown led to a decrease in loan originations, the sale of third party products, the use of credit and debit cards by customers and also the efficiency in collection efforts.
"This may lead to a rise in the number of customer defaults and consequently an increase in provisions," it said.
"The extent to which the pandemic, including the current “second wave” that has significantly increased the number of cases in India, will continue to impact the Group's results.
The Bank's results
will depend on ongoing as well as future developments, which are highly uncertain, including, among other things, any new information concerning the severity of the pandemic and any action to contain its spread or mitigate its impact whether government-mandated or elected by us," HDFC Bank
said in a filing.
Other income or the non-interest revenue during the quarter rose 26 per cent to Rs 7,593 crore as against Rs 6,032 crore in the year-ago period.
The Bank’s net revenues (net interest income plus other income) grew to Rs 24,713 crore in Q4FY21 from 21,236 crore in the same period a year earlier.
The Bank’s gross non-performing assets (NPAs) rose sequentially at 1.32 per cent in Q4FY21. In Q3FY21, gross NPA of the bank was 0.81 per cent. Meanwhile, net NPAs of the lender stood at 0.40 per cent in the March quarter.
Capital adequacy ratio of the Bank at the end of March quarter stood at 18.8 per cent, well above the regulatory requirement of 11.075 per cent.
Provisions and Contingencies for the March quarter stood at Rs 4,693 crore as against Rs 3,784 crore in the year earlier period. Total deposits in Q4FY21 saw an increase of 16 per cent over the year-ago quarter.
On Friday, the company's scrip closed marginally higher (0.056 per cent) at Rs 1,430.90 a piece on NSE.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.