HDFC Bank's Q1 profit rises 12% to ₹18,155 crore
HDFC Bank just posted a solid ₹18,155 crore profit for the June quarter—a 12% jump from last year—beating analyst predictions even though it had to set aside much more money for potential loan losses.
The bank's main business (net interest income) also grew by 5%.
Provisions rise significantly this quarter
Provisions (money kept aside for risky loans) shot up to ₹14,441 crore from just ₹2,602 crore last year, partly due to a one-time event with its subsidiary.
There was a small uptick in bad loans too—gross NPAs rose slightly to 1.4%.
Still, HDFC Bank is showing it can handle bumps and keep moving forward.
Bonus shares and special dividend for shareholders
To sweeten things for shareholders, HDFC Bank is giving out bonus shares (1:1 ratio) and a special interim dividend of ₹5 per share.
Even with higher risks this quarter, the bank is signaling confidence and rewarding those who stick with them.