India's largest lender HDFC Bank saw its Q1 net profit fall 2% quarter-on-quarter on lower core income growth and higher tax expenses. Net profit for the quarter stood at Rs 16,174.75 crore, compared with Rs 16,510 crore in the January-March quarter.
Analysts polled by Bloomberg estimated a net profit of Rs 15,652 crore.
Net interest income, or core income for the bank rose 2% sequentially to Rs 29,837 crore. Other income too rose 16% on a quarter-on-quarter basis to Rs 10,668 crore.
Net interest margin rose marginally to 3.47% as of June 30, compared with 3.44% as of March 31.
Tax expenses for the quarter stood at Rs 5,108 crore, compared to a tax write-back of Rs 749 crore in the March quarter.
Asset quality for the bank worsened with gross non-performing asset ratio rising 9 basis points quarter-on-quarter to 1.33% in the June quarter. Net NPA ratio too rose by 6 basis points sequentially to 0.39%.
The lender's total advances stood flat quarter-on-quarter at Rs 24.87 lakh crore. Total deposits too remained flat at Rs 23.8 lakh crore.
During the quarter, retail loans grew by around Rs 18,600 crore; commercial & rural banking loans grew by around Rs 7,200; and corporate & other wholesale loans were lower by Rs 26,600 crore over March 31, 2024.
The Bank's low cost current account savings account deposits were Rs 8.63 lakh crore as of June 30, down 5% sequentially.
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