Indias HDFC Bank reports 12.2% profit growth in Q1 due to higher interest income

July 19 (Reuters)-According to the market value of India, the largest private bank HDFC Bank reported higher profit than expected on Saturday due to the increase in interest income from loans and treasury gains, even if the provisions for bad loans emerged.

According to the data compiled by LSEG, the Bank’s independent net profit increased by 12.2% in April-June quarter and 172.84 billion rupees rose above the average forecast of the analyst in April-June.

The Bank’s net interest income – the difference between the interest paid in loans and paid from the deposit – increased by 5.4% and rose to 314.38 billion RUPYA.

Typically, other revenues supported by treasury earnings and fees on services have doubled 217.29 billion rupees in a quarter.

However, the provisions of HDFC Bank’s bad loans increased by five times to 144 billion Rupia.

In the filing on the stock exchange, the Bank said that most of these provisions were not linked to real bad loans, but rather act as “a cyclic bumper to make the balance sheet more flexible”.

Indian lenders struggled with an increase in bad loans in segments such as microfinance and unsecured portfolio, which forced them to allocate more funds and strengthen their balance sheets for potential assumed.

On Thursday, HDFC Bank Peer Axis Bank doubled new bad loans due to the market comparison exercise.

While the general bank loan growth in India is slowing down, HDFC Bank has increased by 17.1% in loans, which has grown 6.7% for the total credit book for small and medium -sized enterprises.

The Special List also approved its first bonus share on Saturday, so each of the shareholders will be entitled to receive an extra bonus shares for each share. The bank said that the export date will still be determined.

Bonus on a subject, a company distributes to the stocks of additional stocks free of charge. It is usually a sign of trust in financial performance and growth orbit.

The Board also approved a special dividend of 5 rupees per share. ($ 1 = 86.1450 Indian Rupi) (reported by Ashwin Manikandan; Editing by Joe Bavier)