HDFC Bank NPA

The bank said for select products and vouchers, redemption of reward points will be capped at 70 per cent of the total value, but this is not applicable for Infina and Diners Black cards

In Q4FY22, the bank recorded a 22.8 per cent rise in its net profit year-on-year.

The bank, according to the rating agency, has ample capital buffers, as reflected in its Tier-I capital ratio of 17.7 per cent as on September 30, 2020

Net profit for reporting quarter rises by 19.6 per cent to Rs 6,658.62 crore from net profit of Rs 5,568.16 crore in Q1FY20

Provisioning costs higher than expected; FY21 EPS estimated to decline by 2-4 per cent

The specific loan loss provisions in the current quarter include one-offs of approximately Rs 700 crore, primarily relating to some corporate accounts

For investors of HDFC Bank habituated with gross non-performing assets (NPAs) of about one per cent, the June quarter (Q1) result is certainly an aberration. The gross NPA ratio ebbed higher coming in at 1.24 per cent, near about the bank's 10-year historic average of about 1.3 per cent. Paresh Sukthankar, deputy managing director, HDFC Bank, explains that of the total increase in gross NPAs, 60 per cent pertained to the agricultural segment. Recoveries were relatively weak in this segment due to farm loan waivers announced by various state governments. As per HDFC Bank's FY17 annual report, the bank has Rs 77,921 crore of agriculture sector exposure, classified as priority sector loans (PSL) and non-PSL exposure such as Kisan Gold Cards loans. Q1 numbers, however, suggest HDFC Bank is pruning its Kisan Gold Loans portfolio as this exposure is reduced from Rs 28,258 crore in March'17 quarter to Rs 27,685 crore. The bank also has exposure to micro finance institutions (MFIs) reflected .