However, its profit was lower than ₹6,809 crore estimated by a Bloomberg poll of 15 analysts.The bank’s net interest income – difference between interest earned and interested expended – grew 17.8% y-o-y to ₹15,665.4 crore. Its net interest margin -- a key measure of profitability – stood at 4.3%, unchanged from the same period last year.

HDFC Bank’s asset quality improved in the June quarter with gross bad loan ratio or the percentage of bad loans to total advances declining 4 bps y-o-y to 1.36%. Its net NPA ratio was also down 10 bps to 0.33% in Q1 FY21. However, compared to the March quarter of FY20, HDFC Bank’s gross bad loan ratio was up 10 bps. 

The bank said in a statement that in line with the additional regulatory package guidelines dated 23 May, the bank granted a second three-month moratorium on installments or interest, as applicable, due between 1 June and 31 August.

“For all such accounts where the moratorium is granted, the asset classification shall remain stand still during the moratorium period (i.e. the number of days past-due shall exclude the moratorium period for the purposes of determining whether an asset is non-performing)," it said.

HDFC Bank also said that it holds provisions as at 30 June 2020 against the potential impact of covid-19 based on the information available at this point in time.

“The provisions held by the bank are in excess of the RBI prescribed norms," it said, without disclosing the quantum of provisions set aside for covid-19. Its total provisions stood at ₹3,891 crore, up 49% from the same period last year. 

The bank’s total advances were at ₹10.03 trillion in Q1 of FY21, an increase of 20.9% over the same period last year. The domestic retail loans grew 7.2% and domestic wholesale loans grew 37.6%, it said, adding that the domestic loan mix between retail and wholesale was 48:52. Overseas advances constituted 3% of total advances, the bank said.

Total deposits stood at ₹11.89 trillion, an increase of 24.6% over 30 June last year. Its current and savings account (CASA) deposits grew 26% with savings account deposits at ₹3.27 trillion and current account deposits at ₹1.5 trillion. The bank said its CASA deposits now comprise 40.1% of total deposits as of 30 June, 2020.

HDFC Bank’s total capital adequacy ratio (CAR) as per Basel III guidelines was at 18.9% as on 30 June, as against a regulatory requirement of 11.075%, including the capital conservation buffer of 1.875%, and an additional requirement of 0.20% for being a Domestic Systemically Important Bank (D-SIB).