Net interest income (NII) for Q2FY21 grew 16.7 per cent YoY at Rs 15,776 crore, driven by asset growth of 21.5 per cent and a core interest margin for the quarter of 4.1 per cent. On asset front, gross non-performing assets (NPAs) of the bank fell to 1.08 per cent of the gross advances as on September 30, 2020, as against 1.38 per cent a year earlier. Likewise, net NPAs too came down to 0.17 per cent from 0.42 per cent.
Meanwhile, the lender informed that its board of directors, at the meeting held on Saturday, approved appointment of Sashidhar Jagdishan as an additional director and also managing director and chief executive officer of the bank.
The company's management remains optimistic about a cyclical recovery. Loan against property (LAP) and retail working capital loan disbursals are already at pre- Covid levels and unsecured loans will reach pre-Covid levels by October. Bureau data shows that inquiries for auto and home loans have moved above pre-Covid levels.
With focus on top end customers across segments, superior underwriting, and healthy provisioning & capital buffers (CET 1 ratio at 17 per cent), analysts at Dolat Capital expect HDFC bank
to be amongst the best placed amidst current uncertainty. "We factor in incremental stress (RSA+ slippage) of 3.7 per cent for the bank," the brokerage said.
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.