HDFC Bank's Q1FY20 PAT rises by a massive 21%; lender hires 14,604 employees
A Bloomberg poll of analysts had estimated HDFC Bank’s net profit to come in at Rs 5,690 crore in Q1FY20.
Private lender HDFC Bank missed analysts' estimates during June 2019 (Q1FY20) quarter in terms of top-line performance. The bank earned a net profit of Rs 5,568.2 crore, an increase of 21.0% over the quarter ended June 30, 2018. The net profit arose after providing Rs 2,965.4 crore for taxation. A Bloomberg poll of analysts had estimated HDFC Bank’s net profit to come in at Rs 5,690 crore in Q1FY20. On the other hand, net interest income (NII) which arises after interest earned less interest expended, came in at Rs 13,294.3 crore rising by 22.9% compared to Rs 10,813.6 crore for the quarter ended June 30, 2018, driven by asset growth and a core net interest margin for the quarter of 4.3%.
For the quarter, provisions and contingencies were at Rs 2,613.7 crore as against Rs 1,629.4 crore for the quarter ended June 30, 2018. The key components therein for the quarter ended June 30, 2019 were specific loan loss and contingent provisions of Rs 2,413.5 crore (as against Rs 1,432.2 crore for the corresponding quarter of the previous year) and general provisions Rs 200.2 crore (as against Rs 183.2 crore for the corresponding quarter of the previous year).
Meanwhile, gross non-performing assets were at 1.40% of gross advances as on June 30, 2019 (1.17% excluding NPAs in the agricultural segment) as against 1.33% as on June 30, 2018 (1.09% excluding NPAs in the agricultural segment). Net non-performing assets were at 0.4% of net advances as on June 30, 2019.
As of June 30, 2019, the Bank’s distribution network was at 5,130 banking outlets and 13,395 ATMs across 2,764 cities / towns as against 4,804 banking outlets and 12,808 ATMs across 2,700 cities / towns as of June 30, 2018.
Of the total banking outlets, 53% are in semi-urban and rural areas. Number of employees were at 104,154 as of June 30, 2019 (as against 89,550 as of June 30, 2018). That would be a massive rise in employment, as some 14,604 employees have been hired from June 2018 to June 2019 quarter.
Ahead of the Q1 result announcement, the share price of HDFC Bank finished at Rs 2,375.95 per piece down by 1.16%.