HDFC Bank 1QFY 20 Result 1QFY21 4QFY20 1QFY20 QoQ (%) YoY (%)
Net Interest income 15665 15204 13294 3.0% 17.8%
Other income 4075 6033 4970 -32.5% -18.0%
Operating expenses 6911 8278 7117 -16.5% -2.9%
Pre-Provision profit 12829 12959 11147 -1.0% 15.1%
Provision 3892 3784 2614 2.9% 48.9%
Profit before tax 8938 9174 8534 -2.6% 4.7%
Tax 2279 2247 2965 1.4% -23.1%
Net Profit 6659 6928 5568 -3.9% 19.6%
Advances 1003299 993703 829730 1.0% 20.9%
Deposits 1189387 1147502 954554 3.7% 24.6%


HDFC Bank 1QFY 20 Key Ratios 1QFY21 4QFY20 1QFY20
Gross NPA 1.36% 1.26% 1.40%
Net NPA 0.33% 0.36% 0.43%
Net Interest margin 4.30% 4.30% 4.30%
CASA Ratio 40.10% 42.20% 39.70%
Provision Cpverage Ratio 75.70% 71.40% 69.30%
Tier 1 Capital adequacy 17.50% 17.20% 15.60%


Result Highlight:

  • Results look good from the leader of the sector. Bank Q1 profit jumps 20% to Rs 6,658.6 crore, loan growth lifts NII 18%.
  • During Q1, HDFC bank automatically increased WC loan limit by 25% for all companies that held business accounts with it.
  • The bank’s net interest income or core income rose 17.8% to Rs 15,665 crore compared to Rs 13,294 crore a year ago.
  • HDFC Bank set aside provisions and contingencies worth Rs 3891.5 crore during the first quarter of this fiscal.
  • The Bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 4,002 crore as on June 30, 2020.
  • Gross non-performing assets rose to Rs 13,773.5 crore at the end of June compared with Rs 12,650 crore in the quarter ending March 31, 2020. As a share of total loans, the banks’ gross NPA ratio stood at 1.36% as of June 30, compared to 1.26% in the previous quarter.
  • The bank’s other income stood at Rs 4,075.31 crore in the June-ended quarter compared to Rs 4,970.25 crore in the year ago period.
  • The banks’ advances rose 21% to Rs 10.03 lakh crore during the quarter ended June 30, 2020 from Rs 8.29 lakh crore in the same quarter of the previous fiscal.

Capital Rising

Over the last few months, a number of Indian lenders have tapped the markets to raise equity capital. Commenting on HDFC Bank’s plans to raise capital, chief executive officer Aditya Puri told analysts that the bank has sufficient cushion. We have excellent capital adequacy and sufficient cushion, Puri said in an analyst conference call.


Reported loan moratorium is lowest among the large bank but strictly not comparable: The bank said, 9% of the total customers/book has availed moratorium as of June. As the COVID situation persists, the asset quality concern of unsecured retail book may concern red flag. As of 1QFY21, the unsecured retail book contributes 16.6% of the total advance’s v/s 17% in previous quarter.


HDFC Bank reported a stable trend on assets quality and operating performance in 1QFY21. The Bank carries sufficient liquidity with LCR stood at 140% in 1QFY21 against the regulatory requirement of 80% announced by RBI in 17th April 2020. The bank has maintained a higher liquidity by virtue of robust deposit traction of 24.6% YoY and 3.7% QoQ. We expect HDFC Bank to remain one of the best among all the lending business.


Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more

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