HDFC Bank Q1 profit rises 20%

HDFC Bank Ltd on Monday reported a 20.2% increase in its net profit for the June quarter on higher net interest income and other income.

Net profit for the quarter increased to ₹3,893.84 crore as compared to ₹3,238.91 crore a year ago. Fourteen analysts polled by Bloomberg had forecast a net profit of ₹3,914.50 crore.

Net interest income (NII) or the core income a bank earns by giving loans increased 20.4% to ₹9,370.74 crore from ₹7,781.44 crore last year. Other income jumped 25.3% to ₹3,516.66 crore from ₹2,806.61 crore in the same period last year.

However, its asset quality worsened and provisions surged. Total bad loans rose 47.2% to ₹7,242.93 crore from ₹4,920.89 crore a year ago.

Quarter-on-quarter, it increased 23.06% from ₹5,885.66 crore.

Gross non-performing assets (NPAs) rose to 1.24% as compared to 1.05% in the previous quarter and 1.04% in the year-