HDFC Bank shares jump 3% after second quarter earnings

Shares of HDFC Bank on Monday rose by 3 per cent after the company reported a 16 per cent rise in its consolidated net profit for the second quarter ended on September 30, 2020.

The stock gained 2.48 per cent to Rs 1,228.80 on the BSE.

On the NSE, it rose by 2.97 per cent to Rs 1,235.

HDFC Bank on Saturday reported a 16 per cent rise in its consolidated net profit to Rs 7,703 crore for the second quarter ended on September 30, 2020.

The private sector lender had posted a consolidated net profit of Rs 6,638 crore in the corresponding quarter a year ago.

Total consolidated income during the quarter under review rose to Rs 38,438.47 crore from Rs 36,130.96 crore in July-September 2019, the bank said in a release.

On a standalone basis, after providing Rs 2,597.2 crore for taxation, HDFC Bank said it earned a net profit of Rs 7,513.10 crore, an increase of 18.4 per cent over the quarter ended September 30, 2019.

Total income (standalone) grew to Rs 36,069.42 crore in the second quarter of FY 2021 from Rs 33,755 crore in the year-ago quarter.

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.

In absolute value, gross NPAs or bad loans reduced to Rs 11,304.60 crore from Rs 12,508.15 crore. Net NPAs came down to 0.17 per cent (Rs 1,756.08 crore) from 0.42 per cent (Rs 3,790.95 crore).