HomeMarket NewsHDFC Bank Q1 Results: Provisions see a sharp jump; board approves bonus, dividend
HDFC Bank’s provisions for the quarter increased significantly from the March quarter figure of ₹14,441 crore to ₹3,193 crore.
HDFC Bank Ltd., India’s largest private lender reported results for the June quarter on Saturday, May 19, where higher other income contributed to the growth in the lender’s bottomline.
The lender’s Net Interest Income (NII) or core income earned by the lender grew by 5.4% from the same quarter last year to ₹31,438 crore. A CNBC-TV18 poll had projected this figure to be ₹31,384 crore.
Net profit for the period was higher than the CNBC-TV18 poll figure of ₹17,067 crore. HDFC Bank’s bottomline grew by 12.2% from the year-ago quarter to ₹18,155 crore.
Asset quality for India’s largest private lender remained stable on a sequential basis but saw a marginal deterioration. Gross NPA for the quarter stood at 1.4%, compared to 1.33% in March, while Net NPA stood at 0.47% in June, compared to 0.43% in March.
Provisions for the quarter increased significantly from the March quarter figure of ₹14,441 crore to ₹3,193 crore. The lender in its notes to accounts mentioned that it has created a floating provision of ₹9,000 crore in-line with board approved policy during the quarter. The board has also approved contingency provisions worth ₹1,700 crore.
Floating provision is the amount of money that the bank sets aside above the minimum regulatory requirement to cover from potential losses from a bad loan situation. This allows lenders to use the same without significantly impacting their capital position if the need arises.
HDFC Bank’s board has also approved a special dividend of ₹5 per share and the record date for that has been fixed as Friday, July 25. In addition, the board has also approved its first ever bonus issue in the ratio of 1:1, which means shareholders will be entitled to one free share for every one share held as on the record date, which is yet to be determined.
HDFC Bank had already reported its business momentum in its quarterly update earlier this month. The lender’s loan book grew by 6.7% from last year to ₹26.53 lakh crore, while deposit growth remained strong at 16.4% from last year to ₹27.64 lakh crore. Deposit growth was led by term deposits, which grew by 20.6% on a year-on-year basis.
Shares of HDFC Bank ended at the day’s low on Friday, declining 1.6% to end at ₹1,956. The stock is 3.5% away from its record high level of ₹2,027.
First Published:
Jul 19, 2025 2:59 PM
IST
