HDFC Bank Earned Rs 101 Crore Per Day In Last 90 Days! Profits Surge By 18%
HDFC Bank on Saturday reported its consolidated net profit at Rs 9,096 crore for the second quarter ended September 2021.
This an 18% increase from the consolidated net profit of Rs 7,703 crore in the corresponding quarter last year.
The increase in profits came about due to a 15.5% increase in loans.
The bank increased its market share by growing loans at more than double the industry growth rate.
After taxation, it earned a net profit of Rs 8,834.3 crore.
This is again a year-on-year (y-o-y) growth of 17.6% over the quarter ended September 30, 2020 when it earned Rs 7,513.1 crore.
Its total standalone income grew to Rs 38,754.16 crore in the second quarter of FY2022 from Rs 36,069.42 crore in the year-ago quarter.
As of September 30, its total deposits were Rs 14.06 lakh crore, up 14.4% from last year.
Of that amount, savings account deposits stood Rs 4.52 lakh crore and current account deposits at Rs 2.06 lakh crore.
Time deposits stood at Rs 7.48 lakh crore, an increase of 4.2% over the corresponding quarter of the previous year.
In response to the quarterly results, its shares hit a record high today and brokerages raised target price on the stock by up to 11.7%.
The results have been strong and their retail/ commercial growth is said to continue to accelerate.
Another thing the bank, which is India’s biggest private sector lender, has going for it is that its asset quality vulnerability is lower than peers even in the pandemic.
This bears testament to its risk selection and capital productivity consciousness.
Total income stood at Rs 38,754 crore during the quarter, compared to Rs 36,069 crore in the year-ago period.
Booming Credit Cards Business
The bank said that it issued 400,000 credit cards as of September 21 after the RBI ban was lifted.
The ban prohibited it from issuing new cards and launching new digital banking initiatives
Parag Rao, group head – Payments, Consumer Finance, Digital Banking & IT, HDFC Bank, says that the bank is looking to acquire new customers and enhance its current offerings.
It introduced the relaunch of 3 cards which have been reinvented- the Millennia, MoneyBack+ and Freedom cards.
It is planning to recover lost ground and is targeting growth in the credit cards business from its alliances with a number of industrial sectors.
To that end, it is introducing initiatives such as co-branded cards with corporate India spanning pharma, travel, FMCG, hospitality, telecom, and fintech.