HDFC Bank reported a 18.3% increase in standalone net profit for the quarter ended March 31, 2017, at Rs 3,990.1 crore compared with Rs 3,374 crore in the same quarter previous fiscal.
Provisions and contingencies for the quarter ended March 31, 2017 were Rs 1,261.8 crore. This includes specific loan loss provisions of Rs 977.9 crore, general provisions of Rs 280.3 crore and other provisions of Rs 3.6 crore.
The bank had provisions of Rs 662.5 crore in the same quarter previous fiscal. This included specific loan loss provisions of Rs 490.3 crore, general provisions of Rs 161.1 crore and other provisions of Rs 11.1 crore.
The specific loan loss provisions for the quarter ended March 31, 2017 include provisions on accounts that would have turned non-performing assets (NPAs) during the quarter ended December 31, 2016, but were classified as NPAs during the quarter ended March 31, 2017, in line with the additional 60/90 day dispensation provided by the Reserve Bank of India vide its circulars dated November 21, 2016 and December 28, 2016, the bank said.
Meanwhile, for the second quarter in a row, there was a massive drop in HDFC Bank’s headcount that came down by over 6,000 to 84,325 owing to increased digitalisation in the March quarter and it expects the trend to continue.
Shares of the bank on Friday rose by over 2%, adding Rs 8,918 crore to its market valuation, after the company reported an 18.2% growth in net profit for the March quarter.
The stock gained 2.38% to end at Rs 1,496.75 on the BSE. During the day, it rose by 2.60% to Rs 1,500, its 52-week high level.
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