Net profit jumps 16%, board approves dividend of 6.50

The country’s largest private sector lender, HDFC Bank, on Saturday announced a 16.1% year-over-year increase in net income to 7,729.64 crore during the quarter ended June 30, 2021. The bank had posted a net profit of 6,658.62 crore in the corresponding quarter a year ago.

HDFC Bank’s total income over the same period increased 6.7%, with the private bank’s total income for June 2021 amounting to 36,771.47 crore against 34,453.28 crores. The private bank’s AGM also recommended a dividend of 6.50 per share at today’s board meeting.

Announcing the recommendation of Dividend of 6.50 per participating share HDFC Bank said: “The Board of Directors, at its meeting of June 18, 2021, recommended a dividend of 6.50 per participating share with a par value of 1 each from the net profits for the fiscal year ended March 31, 2021, subject to the approval of the Bank’s shareholders at its next annual general meeting. The effect of the proposed dividend has been taken into account in determining the capital funds in the calculation of the capital adequacy ratio at June 30, 2021. ”

The Mumbai-based bank’s gross bad debt ratio widened to 1.47% at the end of June, from 1.32% in the previous quarter.

However, HDFC Bank reported lower net profit and total income from the previous quarter. HDFC Bank’s total income from April to June 2021 is 36,771.47 crore against 38,017.50 crore in total income from January to March 2021. The leading private bank also reported a drop in net income compared to the previous quarter. Its net income from April to June 2021 amounts to 7 729.64 crore which amounted to 8,186.51 crore from January to March 2021.

“The impact of COVID-19, including changes in customer behavior and pandemic fears, as well as restrictions on business and individual activities, has resulted in significant volatility in the global and Indian financial markets and a decrease in significant impact of global and local economic activities. disruptions from the epidemic have resulted in reduced loan origination, sales of third-party products, customer use of credit and debit cards, and the effectiveness of collection efforts, which could lead to a continued increase in the number of customer defaults. and consequently an increase in provisions there, ”said the private lender.

HDFC Bank added that the extent to which the COVID-19 pandemic will continue to impact the Bank’s results will depend on current and future developments, which are highly uncertain, including, among others, any new information. regarding the severity of the COVID-19 pandemic, and any action to contain its spread or mitigate its impact, whether mandated by the government or elected by us.

HDFC Bank is the first major lender in India to release results as the country emerges from a second wave of coronavirus that has closed businesses and resulted in millions of job losses. While the country’s most valuable bank has been less affected by the severity of the pandemic on the quality of its assets, it saw its retail lending decline by 1% in the June quarter compared to three months earlier, although the overall growth of its loan portfolio remained robust at 14.4%. annually.

To subscribe to Mint newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our app now !!

About Clara Barnard

Clara Barnard

Check Also

New law encourages homeowners to offer affordable housing | Granite City News

Governor JB Pritzker signed a landmark housing bill that pushes homeowners to create more affordable …