Sensex drops over 200 pts in early trade; Nifty slips below 14,400

Sensex drops over 200 pts in early trade; Nifty slips below 14,400

It hit a new 52-week high of ₹1,503.00. According to administrative [Basel 2] fragment grouping, homegrown retail advances developed by 5.2 percent and homegrown discount credits developed by 25.5 percent, the bank said.

The bank made provisions and contingencies amounting to ₹3,414.1 crore consisting of specific loan provisions of ₹2,883.6 crore and general and other provisions of ₹159.9 crore, for the December quarter.

The bank, which had detected malpractices in its auto lending vertical earlier, reported a reduction in the overall auto loans outstanding at Rs 81,880 crore as against Rs 83,552 crore in December 2019, but the same was up when compared to September's Rs 79,664 crore.

Even as the business grew by over 15%, the bank managed to curtail its operating expense growth to 8.6% at Rs 8,574 crore. Net revenues (net interest income plus other income) for the nine months ended December 31, 2020 were Rs 65,370.4 crore, as against Rs 58,210.4 crore for the nine months ended December 31, 2019.

"Total provisions for the current quarter include contingent provisions of almost Rs 2,400 crore for proforma NPA as described in the asset quality section".

The Gross and Net non-performing assets were at 0.81% of gross advances and 0.09% of net advances as on December 31, 2020 respectively. Total provisions (comprising specific, floating, contingent and general provisions) were 260% of the reported Gross NPAs or 148% of proforma Gross NPAs as on December 31, 2020.

The non-interest income grew 11 per cent to Rs 7,443 crore, largely on the back of a gain or revaluation in an investment at Rs 1,109 crore, which stood at Rs 676 crore in the year-ago period. The domestic brokerage firm said that HDFC Bank has delivered strong business growth as the economy continues to recover from the COVID-19 pandemic shock.

Supreme Court of India has directed that accounts which were not declared NPA till August 31, 2020, shall not be declared as such until further orders.

The bank additionally said it kept on holding arrangements as of December 2020 against the possible effect of COVID-19 dependent on the data accessible now and the equivalent are in overabundance of the RBI endorsed standards.

HDFC Bank is the first major lender to declare its results for the December quarter. Analysts at Motilal Oswal Financial Services have given a "buy" rating to the stock with a target price of Rs 1,720 apiece, implying a 17 per cent rally.

As of December 2020, the bank's conveyance network was at 5,485 branches and 15,541 ATMs/money store and withdrawal machines across 2,866 urban communities towns as against 5,203 branches and 14,533 ATMs/CDMs across 2,787 urban areas towns as of December 2019. The ratio would have been 1.38% without the relaxation of rules regarding the recognition for bad debt, the bank said in the filing.

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