HDFC Bank’s net income has increased by more than 30% since its return.

Mumbai: The second-largest lender, HDFC Bank, reported a strong 35.33 percent increase in net income at Rs 16,174.75 crore for the June quarter. Although the numbers are not comparable because the merger with its parent company only went into effect in July of last year, the bank is returning to its once renowned over 30 percent growth in net income for as many as 34 quarters on the trot which ended with the pandemic era.

The bank’s standalone net non-performing assets (NPAs) doubled, but gross non-performing assets (NPAs) increased by 73% in absolute terms due to the merger’s enormous balance sheet expansion rather than in percentage terms because of the significant reduction in provisions. Despite this, the bank saw a higher profit.

As the asset quality has only gotten better, loan provisions for the quarter were Rs 2,602 crore, down from Rs 13,511.64 crore in the prior quarter. As a percentage, GNPA increased somewhat to 1.33 percent from 1.24 percent in the prior quarter and 1.17 percent in the same time last year. In a similar vein, net NPAs increased to 0.39 percent in June 2023 from 0.30 percent in June 2023 and 0.33 percent in March 2023.