Given the uncertainty amid the Covid-19 pandemic, analysts had varying estimates for the bank’s profit. Edelweiss Securities, for instance, had pegged the profit at Rs 2,117.2 crore, while those at ICICI Securities saw the PAT at Rs 4,676.5 crore.
Profit before tax (PBT) for the bank came in at Rs 6,341.45 crore for the quarter under review, up 25.33 per cent from Rs 5,059.8 crore logged in the previous-year quarter. It advanced 14.3 per cent from Rs 5,546.1 crore QoQ.
The Mumbai-based bank’s operating profit increased nearly 12 per cent to Rs 16,460 crores in Q2FY21 from Rs 14,714 crores clocked in Q2FY20.
The lender’s net interest income (NII) – the difference between interest earned on loans and paid on deposits – came in at Rs 28,182 crore compared with Rs 24,600 crore earned in Q2FY20. Sequentially, it logged an improvement of 5.7 per cent from Rs 26,641 crore-income reported in June quarter of FY21.
Domestic Net Interest Margin (NIM) improved to 3.34 per cent in Q2FY21, registering an increase of 12 bps YoY.
The bank’s gross non-performing assets (GNPA) declined to Rs 1.25 trillion during the recently concluded quarter, as against Rs 1.29 trillion in Q1FY21.
In ratio terms, the GNPA ratio improved 16 bps to 5.28 per cent from 5.44 per cent in the June quarter.
Net NPA, meanwhile, declined to Rs 36,450.7 crore from Rs 42,703.6 crore sequentially. The ratio dipped to 1.59 per cent from 1.86 per cent.
During the September quarter, the bank earmarked provisions worth Rs 10,118 crore, down 23 per cent YoY from Rs 13,138.9 crore set aside in Q2FY20. Of this, provisions for NPA were at Rs 5,619.28 crore, down from Rs 11,040.72 crore YoY. Sequentially, provisions dipped 19.06 per cent from Rs 12,501.3 crore.
Provision Coverage Ratio (PCR) has improved to 88.19%, up 696 bps YoY and 187 bps QoQ.
The bank reported fresh slippages worth Rs 2,756 crore during the quarter, down from Rs 3,637 crore in Q1FY21 and Rs 8,805 crore in Q2FY20.
Moratorium and restructuring
According to the bank’s financial statement, the lender has extended moratorium to loans worth Rs 8.21 trillion as on August 31, 2020. Besides, it has reclassified loans worth Rs 11,357.78 crore as on September 30, 2020.
"Additional provisions made during the quarter stood at Rs 239 crore as against Rs 1,836 crore set aside in Q1FY21," it said in a statement.
The bank received applications for restructuring of loans worth Rs 6,495 crore in October, 2020. Provisions on such loans stand at Rs 650 crore.
Credit growth for the bank logged an improvement of 6.02 per cent over the previous year, mainly driven by retail advances (14.55 per cent YoY), agri advances (4.19 per cent YoY) and corporate advances (2.82 per cent YoY). Total advances at the end of Q2 were at Rs 23.83 trillion, as against Rs 22.48 trillion in Q2FY20 and Rs 23.85 trillion in Q1FY21.
"With the YoY growth in Corporate Bonds / CPs at Rs 54,980 crores, the loan book has grown by 7.97 per cent YoY. That apart, home loan, which constitutes 23 per cent of bank’s domestic advances, has grown by 10.34 per cent YoY," it said.
Total Deposits, meanwhile, grew at 14.41 per cent on a yearly basis to Rs 34.70 trillion, out of which current account deposit grew by 8.55 per cent YoY, while saving bank deposits grew by 16.28 per cent YoY.
Stock price of the lender hit a low of Rs 198.1 per share post the result but bounced back 5.5 per cent to hit a high of Rs 209 apiece on the BSE. In comparison, the S&P BSE Sensex was up 380 points or around 1 per cent at 3:05 pm.