HDFC Bank, ICICI Bank bring sops for customers ahead of festive season

 At a time when most sectors in the economy are struggling to find their feet due to the virus induced slowdown, the country’s largest private sector lender, HDFC Bank, has said that its business is back to pre-covid levels and that it sees a great future for itself going ahead, as it has managed to build a strong balance sheet and a strong brand.

"If you talk to the automobile industry, steel industry, FMCG industry, see the semi-urban India, rural India, motorcycle segment, gold loan segment, tractor segment and the online market places, the growth is pretty good. However, there are also some sector which will take a little longer," said Aditya Puri, MD&CEO, HDFC Bank. "We are confident about the future. We have achieved pre-covid levels. And in a few segments, we will exceed the pre-covid levels."

Echoing these sentiments, Anup Bagchi, Executive Director, ICICI Bank said that as far as the bank's customers are concerned, the overall spends is at 90 per cent of pre-covid levels and if adjusted for travel and tourism, it is above pre-covid levels in September. The e-commerce segment is seeing around 130-140 per cent spends of the pre-covid levels. And the bank is expecting a 40-45 per cent jump in spends during the festive season due to pent up demand. Normally, the lender sees around 30 per cent growth in its business during festive season.

To boost consumer spending ahead of the festive season, both HDFC Bank and ICICI Bank have come up with sops for their customers, aimed at not only reviving demand and credit growth for the banking sector, but also improving the top-line for various merchants and partners associated with these banks.

Both the banks are offering a range of offers that include spend offers, which is typically done on credit, debit, or pre-paid cards. The festive season sops also include special deals on various categories of loans such as auto loans, personal loans and other consumer loans.

HDFC Bank launched its ‘Festive Treats 2.0,’ where it has tied up with retail brands to offer discounts, cashbacks and extra reward points on both in-store and on-line purchases. E-commerce majors such as Amazon, TataCliq, Myntra, Pepperfry, Swiggy and Grofers will offer special deals during this time for HDFC Bank customers. The bank has also tied up with hyper-local stores and 'kiranas'. In the loans segment, the bank is offering 50 per cent off on the processing fees on auto loans, personal loans and business growth loans and zero processing fee on two-wheeler loans.

Similarly, ICICI Bank has also tied up with leading e-commerce companies so that its customers can avail various offers on categories such as electronics, apparels, jewellery, health & wellness, grocery, food ordering, automobile and others. On top of that, the bank is offering, attractive interest rate on home loans, lower processing fees, tailor made EMIs in auto loans, no cost EMI on consumer finance loans.

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“The festive offers are available for retail consumers as well as business customers with discounts on processing fee on loans, reduced EMIs, gift vouchers and more benefits. The Bank has tied up with leading brands to present these offers to its customers”, the bank said.

Parag Rao, Country Head – Payment Business & Merchant Acquiring Services at HDFC Bank said “Consumers have held back on purchases during the lockdown and there is a lot of pent up demand that has built up in the system. In the past 2-3 months we have seen renewed customer interest and buying patterns. We see this continuing through the festive season as well.

HDFC Bank is expecting to do better than last year in the festive season. Last year, the bank did the highest ever disbursal of two-wheeler loans through ‘Festive Treats’. They also disbursed highest ever personal loans, and saw highest-ever spends through debit, credit cards. “This year, we believe, that it will be bigger and better than last year because we have more number of partners and brands”, Rao said.

Last year, a lot of business for the bank was generated by walk-ins in to the branches. This year, however, lesser footfalls of wall-ins into the branch is expected but all of that has actually shifted to online.

Few days ago, country’s largest lender State Bank of India (SBI) has also come out with its festive season offers wherein it will waive off processing fee for customers applying for car, personal and gold loans through digital banking platform YONO. It will also give a concession of upto 10 basis points (bps) on home loans. It is offering the lowest interest rate starting from 7.5 per cent to customers opting for car loans. They will also get 100 per cent on-road finance on select models, SBI said in a statement.

SC questioning RBI on moratorium unfortunate: HDFC chairman Deepak Parekh

Housing Development Finance Corporation (HDFC) group firms have the opportunity to grow via mergers and acquisitions (M&As) on account of the ongoing crisis, according to Chairman Deepak Parekh.
Subsidiaries need additional capital to prepare for the same, and “we are now emerging into a scenario where there may be inorganic opportunities for our group firms. Some of our subsidiaries will need additional capital for expansion. We have also identified new investment opportunities to help build the next generation of value creators,” Parekh wrote in the annual report, addressing shareholders.
He added: “To support this, we are putting in place a roadmap for our future capital requirements.” However, he did not give any further details.
“We know our position is considerably stronger than most of our peers. We kept building buffers and erred on the side of abundant caution on provisioning requirements. Each time we did this, it was always from a position of strength,” said Parekh.
Parekh was also critical of the Supreme Court for questioning the Reserve Bank of India (RBI) on its move to allow lenders and housing financiers to charge interest. “The saga of the highest court of law questioning the RBI on the moratorium was indeed unfortunate. Why should a central bank have to be answerable to a court on basic principles that the financial sector operates on? Interest payments on borrowings and loans are contractual obligations. No laws are being violated,” said Parekh.
Parekh also cited instances where the legal system “overrode our recovery efforts” on loans given to certain parties that had “long-standing relationships we thought we were confident about”.
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“Through this, we have learnt to be patient as we have to respect the system. We know these loans did not constitute imprudent lending as we have more than adequate security backing them. Yet, as we hold the trust of our stakeholders, we have to have the humility to own up to judgement calls that did not work as expected,” he wrote, adding that HDFC consciously took a stance to prioritise asset quality over growth.

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In addition, Parekh called for one-time restructuring of realty loans. “If developers do not have cash flows due to a slowdown in sales or delay in receiving requisite building approvals, they can neither complete existing projects nor service their loans.”
Any modification in terms of the loans — including additional funding — is considered to be a non-performing loan under the current norms.
“Allowing for restructuring of these loans and categorising them as standard assets will facilitate last-mile funding,” Parekh said. Such a ‘pragmatic approach’ will ease financial stress without bail-out packages, he added.
While the underlying land remains ‘security’, allowing the problem to fester may lead to pile-up of bad debts. Again, “real estate prices have to be realistic to reflect market realities. This will help developers offload unsold inventory and improve cash flow,” said Parekh.
He noted that there should be a system of enabling end-to-end mortgages online. While sanctions can be granted online, disbursement is a lengthy process as e-signatures are not allowed for property documents.

HDFC Bank's Q3 PBT up 15.6% to Rs 9,901 cr; provisions rise by 37.6%

The country’s largest private lender HDFCBank’s profit before tax (PBT) rose by 15.6 per cent to Rs 9,901.85 crore for the quarter ended December 2019 (Q3FY20) on robust growth in net interest income, and fees and commissions. It had posted a PBT of Rs 8,566.89 crore in quarter ended December 2018 (Q3FY19).
The bank’s net profit in Q3FY20 rose by 32.8 per cent to Rs 7,416.5 crore, compared to Rs 5,585.85 crore in the corresponding period of the previous year. Its net interest income (NII), which is interest earned less interest expended, in the quarter rose by 12.7 per cent to Rs 14,172.9 crore from Rs 12,576.8 crore a year ago. The net interest margin (NIM) for the quarter remained stable at 4.2 per cent, the bank said.

Non-interest revenue (other income) grew by 32 per cent to Rs 6,669.3 crore for the quarter, as against Rs 4,921.0 crore in Q3FY19. The main component of other income — fees and commissions — expanded by 24.1 per cent to Rs 4,526.8 crore for the quarter.
The bank said provisions, including those for bad loans and contingencies, grew a whopping 37.6 per cent to Rs 3,043.6 crore in Q3FY20, from Rs 2,211.5 crore in the corresponding period a year ago.
The increase in specific loan loss provisions jumped by 66.2 per cent to Rs 2,883.6 crore in the quarter from Rs 1,734.6 crore the previous year.
The specific loan loss provisions in the current quarter include one-offs of approximately Rs 700 crore, primarily relating to some corporate accounts.
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The general and other provisions declined to Rs 159.9 crore in Q3FY20 from Rs 476.9 crore in the year-ago period.
The asset quality showed some pressure as gross Non-performing assets (NPAs) rose year-on-year basis and sequentially. GNPAs moved up at 1.42 per cent in December 2019, from 1.38 per cent in December 2018. The gross NPAs stood at 1.38 per cent in September 2019.
Bank executives, in a conference call, said the asset quality of unsecured loans is holding well. However, the concern is over stress in the commercial vehicles and equipment segment. This is a function of the economic climate as freight rates and volumes have come down.
Referring to business performance, the bank said its advances rose by 20 per cent to Rs 9.36 trillion. Domestic retail loans grew by 14.1 per cent and domestic wholesale loan book expanded at a much faster pace of 29.3 per cent. The domestic loan mix showed retail share of 52 per cent, while that of wholesale was 48 per cent.
HDFC Bank’s deposits grew by 25.2 per cent to Rs 10.67 trillion at end of December 2019.
The share of low cost – current account and savings deposits (CASA) – in total deposits stood at 39.5 per cent as on December 31, 2019.
The bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was 18.5 per cent as on December 31, 2019 (17.3 per cent as on December 31, 2018). Common Equity Tier 1 Capital ratio (CET-1) was at 16.2 per cent as of December 31, 2019.

HDFC Bank Q3 net profit rises 33% to Rs 7,416 cr on higher interest income

Private lender HDFCBank on Saturday reported a 32.8 per cent growth in net profit to Rs 7,416.5 crore for the third quarter ended December 31 driven by interest and non-interest income.
The bank had posted a net profit of Rs 5,585.9 crore in the October-December quarter of the last financial year.

Total income rose to Rs 36,039 crore during the December quarter against Rs 30,811.27 crore in the year-ago period, HDFC Bank said in a statement.
"Net interest income (interest earned less interest expended) for the quarter ended December 31, 2019, grew to Rs 14,172.9 crore from Rs 12,576.8 crore for the quarter ended December 31, 2018, driven by growth in advances of 19.9 per cent, and a growth in deposits of 25.2 per cent," it said.
The net interest margin for the quarter remained stable at 4.2 per cent, it added.
During the quarter, gross non-performing assets (NPAs) rose to 1.42 per cent of the total advances, compared with 1.38 per cent at the end of the third quarter of 2018-19.
Net NPAs of the bank too increased to 0.48 per cent of the assets in October-December 2019, against 0.42 per cent a year ago.
As a result, the bank's provisions (other than tax) and contingencies increased to Rs 3,043.56 crore against Rs 2,211,53 crore reported in the corresponding period of the previous financial year. Of this, provision of NPA was Rs 2,883.6 crore alone, it said.
The specific loan loss provisions in the current quarter include one-offs of approximately Rs 700 crore, primarily relating to certain corporate accounts. Therefore, the Core Credit Cost ratio (i.e. excluding one-offs), was 0.92 per cent, as compared to 0.90 per cent in the quarter ending September 30, 2019 and 0.88 per cent in the quarter ending December 31, 2018," it said.
Other incomes of the bank increased to Rs 6,669.3 crore against Rs 4,921.01 crore in the same quarter last fiscal.
Total balance sheet size as of December 31, 2019 was Rs 13,95,336 crore against Rs 11,68,556 crore as of December 31, 2018.
Total deposits rose by 25.2 per cent to Rs 10,67,433 crore, while total advances grew by 19.9 per cent Rs 936,030 crore.
The lender's total capital adequacy ratio (CAR) as per Basel III guidelines was at 18.5 per cent as on December 31, 2019 17.3 per cent as on December 31, 2018) against a regulatory requirement of 11.075 per cent, which includes a capital conservation buffer of 1.875 per cent, and an additional requirement of 0.20 per cent due to the bank being identified as a Domestic Systemically Important Bank (D-SIB).

Why India's asset managers are trouncing their global peers this year

Indian asset managers’ shares are trouncing global peers this year as domestic money managers benefit from the tectonic shift in savings from gold and real estate to stocks and bonds.
Reliance Nippon Life Asset Management Ltd. and HDFCAsset Management Co., whose shares have more than doubled in 2019, are the third- and fourth-best performers among 36 peers with a market value of at least $2 billion, data compiled by Bloomberg show.

Retail investors piled into mutual funds after the government ban on high-value currency bills in 2016 hurt returns from gold and property. While total assets have more than tripled to $382 billion in the past five years, only 1.5% of Indians own funds, suggesting a long runway for growth. And passive investing that’s decimated fees for U.S. managers is still to take hold in India.
“Mutual funds have become an asset class of choice with policy makers pushing for the formalization of savings,” Sundeep Sikka, chief executive officer of Reliance Nippon, said in an interview. The decline in deposit rates has also made funds more popular than other financial products, he said.
The parabolic surge in Reliance Nippon and HDFC Asset is also down to the fact that the duo is India’s only listed fund houses. The shortage could ease after UTI Asset Management Co. goes public next year.
To be sure, the two stocks have come off their peaks in recent days as above-average valuations deterred buyers. Problem is, they’re still expensive relative to history and trade at prices slightly above their 12-month targets, data compiled by Bloomberg show.
That’s as inflows to equity funds, the most profitable category for asset mangers, shrank to the lowest in over three years in November even as the main indexes hit new highs. The S&P BSE Sensex held at a record on Wednesday, and is set for the biggest annual gain since 2017.
“We are watching to see whether the slowdown continues for the next few months,” said Sikka. “If the manager has scale and sticky investors, this can be ridden out like in the previous cycles.”
Industry bulls say domestic asset managers’ profits are growing as they expand. That’s in contrast with many global peers, many of whom could become “zombie firms” unable to attract new flows, according to PGIM chief executive officer David Hunt.
“India’s savings pool keeps getting bigger and the market is anticipating that a growing portion of it will go into mutual funds,” said Steve Hanke, professor of applied economics at Johns Hopkins University in Baltimore. “The trend is in place and the trend is your friend.”

Eight of top-10 most valued firms add Rs 52,194-cr in m-cap; SBI, HDFC lead

Eight of the top 10 valued Indian companies together added Rs 52,193.73 crore in market valuation last week, in-line with a bullish broader market sentiment, with SBI and HDFCemerging as the biggest gainers.
The Sensex advanced 434.40 points or 1.07 per cent last week.

From the top-10 list, only TCS and ITC suffered losses in their market capitalisation (m-cap) for the week closed on Friday.
In contrast, Reliance Industries Ltd (RIL), HDFC Bank, HUL, HDFC, ICICI Bank, Kotak Mahindra Bank, SBI and Infosys witnessed a rise in their market valuation.
The m-cap of SBI jumped Rs 11,334.26 crore to Rs 3,05,087.85 crore, becoming the top gainer among the ten most valuable companies.
HDFC's valuation zoomed Rs 10,492.7 crore to Rs 3,96,791.39 crore.
The market cap of ICICI Bank climbed Rs 9,871.88 crore to reach Rs 3,31,011.55 crore and that of Kotak Mahindra Bank gained Rs 8,818.24 crore to Rs 3,08,420.75 crore.
HDFC Bank's valuation rose by Rs 5,055.54 crore to Rs 6,97,726.75 crore and of RIL went up by Rs 2,852.62 crore to Rs 9,83,140.16 crore.
Reliance Industries on Thursday became the first Indian company to hit the Rs 10 lakh crore market valuation mark following a spike in its share price.
However, on Friday the oil-to-telecom conglomerate's market capitalisation came below this milestone and was at Rs 9,83,140.16 crore at the close of trade.
Hindustan Unilever Limited (HUL) added Rs 2,576.12 crore to Rs 4,40,777.38 crore in its valuation and those of Infosys also advanced Rs 1,192.37 crore to reach Rs 2,96,367.29 crore.
In contrast, Tata Consultancy Services (TCS) witnessed an erosion of Rs 6,698.01 crore to Rs 7,70,252.01 crore from its valuation. Also, the m-cap of ITC fell Rs 1,557.16 crore to Rs 3,02,747 crore.
The list of top-10 firms was topped by RIL followed by TCS, HDFC Bank, HUL, HDFC, ICICI Bank, Kotak Mahindra Bank, State Bank of India (SBI), ITC and Infosys in that order.

HDFC Bank appoints 6-member search panel to find MD Aditya Puri's successor

In a move seen as part of a succession plan for Managing Director Aditya Puri, HDFCBank on Thursday appointed a search panel of six board members to look for a successor. The bank also promoted Chief Financial Officer Sashidhar Jagdishan and Country Head (Operations and Technology) Bhavesh Zaveri to the position of executive directors on its board.
Puri is expected to hang up his boots in October next year after having spent over two years at the helm of the bank’s affairs.

Jagdishan has been part of the bank’s finance function in a managerial role since 1996. He has also worked in business strategy and strategic initiatives of the bank. Zaveri, on the other hand, joined HDFC Bank in 1998 in the operations function.
In a statement sent to stock exchanges, the bank on Thursday said the appointments were “subject to the approval of the Reserve Bank of India, for a period of three years from November 28, 2019, or for such other period/from such date as may be approved by the Reserve Bank of India.” The bank will also seek shareholders’ approval for the move.
The search committee will comprise board members Shyamala Gopinath, Sanjiv Sachar, M D Ranganath, Sandeep Parekh, Srikanth Nadhamuni and Keki Mistry. Mistry will represent the housing finance entity Housing Development Finance Corporation Limited (HDFC).
Puri would act as an advisor to the search committee as it evaluates internal and external candidates over the next few months for a smooth transition.

MSCI adds Info Edge, Indraprastha Gas to India Index; YES Bank, BHEL out

MSCI, the world's biggest index compiler, has added eight Indian stocks including HDFC Asset Management, Info Edge (India) and Indraprastha Gas Ltd to its India Index, while removing Vodafone Idea, Yes Bank and four others that have seen significant market capitalisation erosion this year.
It has added eight companies and deleted six from the MSCI India Domestic Index. Those deleted include Bharat Heavy Electricals Ltd (BHEL), Glenmark Pharmaceuticals, Indiabulls Housing Finance, L&T Finance Holdings, Vodafone-Idea Ltd and Yes Bank, MSCI said in a statement.

Those added to the MSCI India Index include Berger Paints, DLF, HDFC Asset Management, ICICI Prudential Life, Indraprastha Gas Ltd, Info Edge (India), SBI Life Insurance Co and Siemens India.
MSCI added seven stocks and deleted four from MSCI Global Standard Index. The additions included Berger Paints, Colgate, DLF, HDFC AMC, ICICI Prudential Life, SBI Life, and Siemens. Meanwhile, the deletions from the global index include Glenmark, Indiabulls Housing, Vodafone Idea, and Yes Bank.
MSCI Global Standard Index is widely used by global fund houses for benchmarking global equities portfolios.
The changes were announced by Morgan Stanley Capital International (MSCI) in its semi-annual rebalancing of the Global Standard Index.
Those axed are mostly debt-burdened companies that have seen a sharp erosion in their market values in the last one year.
The changes will be effective at the close of November 26, the index provider said.
Its India Domestic Small Cap Index saw 17 additions and 33 deletions.
Those added to the small cap index include Adani Green Energy, BHEL, Castrol India, Glenmark Pharmaceuticals, IndiaBulls Housing Finance, Infibeam Avenues, L&T Finance Holdings, Vodafone-Idea and Yes Bank.
Prominent among the deletions are Adani Transmission, Arvind, CARE Ratings, CG Power & Industrial, Cox & Kings, Dewan Housing Fin Corp, IFCI, IGL, Info Edge (India), Reliance Capital, Reliance Infrastructure and Muthoot Finance.

HDFC consolidated profit up 80% YoY in Q2, Gruh stake sale adds Rs 8k cr

Housing finance corporation HDFC, on Monday, reported a standalone net profit of Rs 3,961 crore, up 60.5 per cent YoY, for the quarter ended September 2019 (Q2FY20) on the back of stake sale from Gruh Finance. The HFC had reported a profit of Rs 3,203 crore in Q1FY20 and Rs 2,467 crore in Q2FY19.
On a consolidated basis, the HFC reported a profit of Rs 10,388 crore, up 80.38 per cent YoY from Rs 5,759.19 crore.
The profit beat Street estimates. Analysts at ICICI Securities, for instance, estimated that other income of Rs 3,421 crore, including gain of Rs 1,632 crore from stake sale in Gruh Finance and Rs 1,074 crore dividend from subsidiary, could lead to a standalone PAT of Rs 3,628 crore, up 47 per cent YoY, in the recently-concluded quarter.
“Pre-tax adjusted gains from the stake sale in Gruh Finance stood at Rs 8,000.29 crore in the consolidated financial results…." the company said in a statement.
Meanwhile, the NII came in at Rs 3,077.7 crore. The company logged a dividend income of Rs 1,073.8, while the tax expense stood at Rs 568.9 crore. The HFC reported a revenue of Rs 13,487 crore in the recently concluded quarter.
"Individual loan growth was 17 per cent on AUM basis... 76per cent of loans were to individuals, while loans to non-individuals on a very selective basis," HDFC said in a statement.
The individual gross non-performing assets ratio (GNPA) came in at 0.73 per cent, while the non-individial GNPA ratio was 2.87 per cent. The overall GNPA ratio was 1.33 per cent.
Analysts had expected the NPA levels to remain more or less stable, yet maintained a negative bias towards the parameter. While Prabhudas Lilladher incorporated slight stress on corporate loan book, analysts at Narnolia said that the rise in delinquency in the non-individual segment could put stress on the asset quality. Prabhudas Lilladher pegged the GNPA ratio at 1.19 per cent, with provisions seen at Rs 461.5 crore.
At 2:46 PM, the stock was trading 2 per cent higher at Rs 2,173 per share, as against a 0.38 per cent rise in the benchmark S&P BSE Sensex. It ended the day at Rs 2,180 levels on the NSE, up 2.4 per cent.

Seven of top 10 companies lose over Rs 1 trillion in m-cap last week

Seven of the 10 most valued domestic companies suffered a combined erosion of Rs 1 trillion in their market valuation last week with HDFC Bank taking the biggest hit by losing over Rs 30,000 crore.
Besides HDFC Bank, the other losers included Reliance Industries (RIL), Hindustan Unilever (HUL), HDFC, Kotak Mahindra Bank, ICICI Bank and Bajaj Finance.

On the other hand, Tata Consultancy Services (TCS), Infosys and ITC are among the top 10 firms that saw rise in their market valuation for the week ended Friday.
Market capitalisation (m-cap) of HDFC Bank dropped the most by Rs 30,198.62 crore to Rs 6,50,446.47 crore.
ICICI Bank's market value slid by Rs 22,866.93 crore to Rs 2,67,265.32 crore and Kotak Mahindra Bank tumbled by Rs 15,624.6 crore to Rs 2,98,413.27 crore.
Similarly, market valuation of HUL tanked by Rs 14,287.76 crore to Rs 4,20,774.52 crore, while HDFC lost Rs 10,178.84 crore from its m-cap, standing at Rs 3,41,349.33 crore.
Besides, Bajaj Finance dropped by Rs 9,437.91 crore to Rs 2,26,309.37 crore and the valuation of RIL stood at Rs 8,28,808.67 crore, a loss of Rs 824.08 crore.
In contrast, valuation of TCS jumped Rs 8,236.49 crore to Rs 7,79,989.45 crore and that of Infosys rose Rs 4,681.59 crore to Rs 3,40,704.24 crore.
The m-cap of ITC advanced Rs 5,344.62 crore to Rs 3,16,069.96 crore.
In terms of ranking of top-10 firms, RIL retained its top position, followed by TCS, HDFC Bank, HUL, HDFC, Infosys, ITC, Kotak Mahindra Bank, ICICI Bank and Bajaj Finance, which pipped State Bank of India to acquire the tenth position.
During the week, Sensex plummeted 1,149.26 points or 2.96 per cent, while Nifty declined 337.65 points or 2.93 per cent.

HDFC Bank reports 18.04% jump in Q1 consolidated net at Rs 5,676.06 cr

Private lender HDFC Bank Saturday reported an 18.04 per cent increase in its consolidated net profit at Rs 5,676.06 crore for the April-June quarter on the back of healthy growth in core income and restricted bad loan proportions.
The bank's net profit during the similar April-June quarter of the previous fiscal stood at Rs 4,808.35 crore.

Consolidated income of the bank rose to Rs 34,324.45 crore April-June 2019 from Rs 28,000.06 crore in the year-ago quarter, the bank said in a regulatory filing.
The interest income grew to Rs 29,176.45 crore in the first quarter of 2019-20 from Rs 23,978.67 crore in the year-ago period, while income from other sources was up at Rs 5,148 crore as against Rs 4,021.39 crore last year.
On standalone basis, the net profit of the lender rose by 21 per cent to Rs 5,568.16 crore in April-June 2019 compared to Rs 4,601.44 crore in the year-ago quarter.
Standalone income increased by 22.7 per cent to Rs 32,361.8 crore during the reported quarter, from Rs 26,367.0 crore in the same quarter a year ago.
On the asset quality, the bank witnessed only a marginal uptick with the gross non-performing assets (NPAs) standing at 1.40 per cent of the gross advances as at end June 2019, from 1.33 per cent by end June 2018. Net NPAs were at Rs 0.43 per cent as against 0.41 per cent a year ago.
In value terms, bank's gross NPAs or bad loans were Rs 11,768.95 crore by June end this year, up from Rs 9,538.62 crore year ago same period.
Net NPAs were of the order of Rs 3,567.18 crore as against Rs 2,907.10 crore.
Provisions and contingencies for the quarter ended June 30, 2019 were Rs 2,613.7 crore as against Rs 1,629.4 crore for the quarter ended June 30, 2018.
The key components for this were specific loan loss, contingent provisions and general provisions, the bank said, adding general provisions included additional provisions of Rs 85.9 crore for standard advances to the NBFC/HFC sector.
The bank said its consolidated advances grew by 17.2 per cent to Rs 880,939 crore as on June 30, 2019 from Rs 751,386 crore as on June 30, 2018.
HDFC Bank said the advances to the vehicle loan segment, where sales volumes have seen some moderation, grew at 8.3 per cent over the previous year.
"The Board of Directors has declared a special interim dividend of Rs 5 per equity share of Rs 2 to commemorate 25 years of the Bank's operations," it said.

HDFC Bank reports 21% rise in Q1 net profit at Rs 5,568.2 crore

Private sector lender HDFC Bank on Saturday reported a 21% year-on-year rise in net profit at Rs 5,568.2 cr for the quarter ended June 30, 2019 (Q1FY20).
The bank had posted a net profit of Rs 4,601.44 crore in the corresponding period last year.
HDFC Bank reported a net interest income (NII) of Rs 13,924 crore in Q1FY20, up 22.9% from the Rs 10,813.6 crore reported in the corresponding period last year.
The lender's gross NPA came in at Rs 11,769 crore, while the net NPA came in at Rs 3,567 crore.

Analysts at Prabhudas Lilladher had pegged the bank’s Q1FY20 net profit at Rs 5,865 crore, up 27.5 per cent YoY from a profit of Rs 4,601.4 crore clocked in the June quarter of previous fiscal (Q1FY19). The bank had reported a profit of Rs 5,885.1 crore in the March quarter of FY19 (Q4FY19).
Analysts had expected the private lender to report NII between Rs 12,390 crore and Rs 13,470 crore, a jump of 20 to 24 per cent from Rs 10,814 crore reported in the same quarter of the previous fiscal.

Nine of top 10 cos lose Rs 88,609 crore in m-cap; HDFC, TCS suffer the most

Nine of the 10 most valued firms suffered a combined erosion of Rs 88,609.87 crore in market valuation last week, with HDFC Bank and TCS taking the biggest knock.
Reliance Industries Ltd (RIL) was the lone gainer among the top-10 frontline companies, adding Rs 11,415.21 crore to its market capitalisation (m-cap) for the week ended Friday to reach Rs 8,11,782.20 crore.

On the other hand, HDFC Bank's valuation plummeted Rs 22,395.4 crore to Rs 6,54,084.95 crore.
The m-cap of Tata Consultancy Services (TCS) dropped Rs 20,150.31 crore to Rs 7,90,983.93 crore.
Hindustan Unilever Ltd (HUL) suffered an erosion of Rs 16,907.1 crore to stand at Rs 3,70,895.36 crore, while that of Kotak Mahindra Bank tumbled Rs 6367.64 crore to Rs 2,83,393.30 crore.
The valuation of SBI tanked Rs 6,291.85 crore to Rs 3,24,454.25 crore and that of ICICI Bank dropped Rs 5,925.68 crore to Rs 2,75,568.83 crore.
ITC's valuation went down by Rs 5,270.27 crore to Rs 3,37,297.19 crore and that of HDFC fell by Rs 3,795.66 crore to Rs 3,89,340.06 crore.
The m-cap of Infosys dipped Rs 1,505.96 crore to Rs 3,12,292.54 crore.
In the ranking of top-10 firms, RIL was placed at the number one position, followed by TCS, HDFC Bank, HDFC, HUL, ITC, SBI, Infosys, Kotak Mahindra Bank and ICICI Bank.
Over the past week, the BSE Sensex fell by 777.16 points to close at 38,736.23 on Friday.

Seven of top-10 firms add Rs 53,732 cr in m-cap; HDFC biggest gainer

Seven of the 10 most valued domestic firms together added Rs 53,732.55 crore in market valuation last week, with HDFC emerging as the biggest gainer.
Tata Consultancy Services (TCS), Infosys and ICICI Bank were the only companies in the top-10 list which suffered losses in their market capitalisation (m-cap) for the week ended Friday.

Among the gainers, the valuation of HDFC zoomed Rs 14,941.11 crore to Rs 3,93,135.72 crore.
SBI's m-cap rallied Rs 8,656.87 crore to Rs 3,30,746.10 crore and that of HDFC Bank jumped Rs 7,925.16 to reach Rs 6,76,480.35 crore.
The market valuation of Kotak Mahindra Bank Ltd advanced Rs 7,860.21 crore to Rs 2,89,760.94 crore and that of ITC climbed Rs 6,742.25 crore to Rs 3,42,567.46 crore.
Reliance Industries Ltd (RIL) added Rs 6,719.38 crore to its m-cap to stand at Rs 8,00,366.99 crore, while Hindustan Unilever Ltd (HUL) added Rs 887.57 crore to reach Rs 3,87,802.46 crore.
In contrast, the valuation of TCS plunged Rs 24,615.64 crore to Rs 8,11,134.24 crore and that of Infosys dropped Rs 5,985.44 crore to Rs 3,13,798.50 crore.
ICICI Bank's valuation dipped Rs 610.96 crore to Rs 2,81,494.51 crore.
In the ranking of top-10 firms, TCS was placed at the number one position, followed by RIL, HDFC Bank, HDFC, HUL, ITC, SBI, Infosys, Kotak Mahindra Bank Ltd and ICICI Bank.
Over the last week, the BSE Sensex gained Rs 118.75 points to close at 39,513.39 on Friday.
However, benchmark equity indices closed with sharp losses Friday after the Budget proposal to raise public shareholding threshold fanned fears of oversupply of new papers in an already overbought market.

HDFC to acquire Apollo Munich Health Insurance for Rs 1,347 crore

HDFC will acquire a controlling stake of 50.8 per cent in Apollo Munich Health Insurance for about Rs 1,347 crore.
Apollo Munich will be later merged with general insurance company HDFC ERGO, part of the HDFC group. HDFC is buying out the entire holding of Apollo Hospitals group in for Rs 1,336 crore, said HDFC chairman Deepak Parekh. It will also buy out 0.4 per cent stake held by employees of Apollo Munich Health Insurance for Rs 10.84 crore.

The deal is subject to regulatory approvals. The entire process is expected to be completed in nine months.
"We had to do two-step transactions since if HDFC Ergo had directly bought Apollo's stake then it would have breached 49 per cent cap on foreign investment in insurance for Munich Re," Parekh said. Munich Re is already HDFC's partner in general insurance company.
Post transaction, Munich Re will continue to hold 49 per cent stake in HDFC ERGO.
To support the transaction with its material benefits for Apollo Munich, Munich Health will pay Rs 294 crore to Apollo Hospitals Enterprises and Apollo Energy in connection with the termination of their joint venture.
The merged entity will have a combined market share of 6.4 per cent in non-life insurance industry with 308 branches in the country. It would also be second largest private insurer in the accident and health segment in the country, HDFC said in a statement.

HDFC puts Jet's Mumbai office space for sale to recover Rs 414 cr

Mortgage lender HDFC has put up crisis-hit Jet Airways' office space for sale with a reserve price of Rs 245 crore, as part of efforts to recover outstanding dues.
Jet Airways, which temporarily shuttered operations on April 17, owes around Rs 414 crore to HDFC.

"The borrower (Jet Airways) has failed to repay the amount (Rs 414.80 crore) due to HDFC Ltd. Accordingly, HDFC Ltd has become entitled to enforce its mortgage over the immovable property," it said in a public notice.
The office, spread over 52,775 square feet carpet area, in Mumbai's suburban financial centre Bandra Kurla Complex (BKC), is on the fourth floor of the building 'Jet Airways Godrej BKC'.
The e-auction of the office, with a reserve price of Rs 245 crore, is scheduled for May 15, according to the public notice.
The distressed airline, which had more than 120 planes in its fleet, has been grappling with financial woes. The full service carrier has defaulted on various payments, including salaries to employees.
As part of a resolution plan, State Bank of India-led consortium of domestic lenders have sought bids for stake sale in the airline.
Four entities -- Etihad Airways, TPG Capital, Indigo Partners and National Investment and Infrastructure Fund (NIIF) -- are learnt to have shown interest in picking up stake in Jet Airways. The details of the bidders are expected to be known on Friday.
Earlier this week, a grouping of Jet Airways' pilots moved the Supreme Court seeking direction to the SBI to provide the assured interim finance for restarting operations.
The petition filed by the National Aviators' Guild has also sought a direction to the Centre and the Director General of Civil Aviation (DGCA) to disallow slots of Jet Airways to other airlines on the permanent basis.

HDFC Mutual Fund reports 61% rise in Q4 profit at Rs 276 crore

The country’s largest fund house — HDFC Mutual Fund (MF) — on Friday reported its result for March quarter. For the quarter, the MF's profits grew 61 per cent, compared to the same quarter last year.
The fund house made profits of Rs 276 crore in March quarter. For 2018-2019, the company clocked profits of Rs 930 crore, which was 31 per cent higher than previous year.

The company ended the year with 16.2 per cent market share in the actively-managed equity oriented schemes. According to the fund house, it manages Rs 1.6 trillion of assets in such schemes.

HDFC group most valuable domestic biz house, overtakes Tatas in m-cap

Financial services conglomerate HDFC group has become the most valuable business house in the country, surpassing Tatas, with the cumulative market valuation of its five listed companies surging Rs 10.40 trillion.
While HDFC group has five listed firms - HDFC Ltd, HDFC Bank, HDFC Standard Life Insurance Company, Gruh Finance Ltd and HDFC Asset Management Company- Tatas have nearly 30 listed companies on the bourses.

At close of trade Thursday, the combined market valuation of five HDFC group firms stood at Rs 10.40 trillion on BSE.
HDFC Bank with a market capitalisation of Rs 5.72 trillion is the country's third most valuable firm after TCS (Rs 7.16 trillion) and RIL (Rs 7.09 trillion).
HDFC has a market cap of Rs 3.3 trillion, HDFC Standard Life Insurance Company Rs 788.24 billion, HDFC Asset Management Company Rs 315.40 billion and Gruh Finance Ltd Rs 228.86 billion.
As many as 22 Tata group firms have a combined market valuation of Rs 10.38 trillion, as per data available on BSE Thursday.
HDFC group had on July 10 this year saw the market capitalisation of its listed firms cross Rs 10 trillion mark.
Shares of Gruh Finance Ltd went up by 1.45 per cent, HDFC Standard Life Insurance Company rose by 1.47 per cent, HDFC Asset Management Company gained 1.12 per cent and HDFC climbed 0.63 per cent, while HDFC Bank declined 0.67 per cent on BSE.
The flagship HDFC Ltd has been in business for the last four decades, HDFC Bank has been in business for 25 years and HDFC Standard Life for 20 years. Gruh Finance Ltd is also in business for 30 years.
First Published: Thu, December 27 2018. 20:35 IST
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HDFC reports 25% jump in Q2 standalone net profit to Rs 24.67 billion

Mortgage lender HDFC Ltd on Thursday reported 25 per cent rise in its standalone net profit to Rs 24.6708 billion in second quarter ended September 30.
The company had registered a net profit of Rs 19.7819 billion in the corresponding period of 2017-18.

Total income during the September quarter stood at Rs 112.5696 billion, up from Rs 90.0737 billion in the same period of the previous financial year, HDFC Ltd said in a regulatory filing.
The consolidated figures were not provided by the company.
Shares of HDFC traded at Rs 1,756.95 apiece on BSE, down 0.71 per cent from its previous close.
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Amid green shoots, economy to grow 7.6% in Q1 on low-base effect: Report

The economic growth is expected to rise to 7.6 per cent in the April-June quarter of 2018-19 from a sub-six per cent figure in the year-ago period mainly due to a low-base effect, says a report by HDFC Bank.
According to a HDFC Bank research report, growth numbers across sectors in the first quarter are likely to get a boost from a favourable base effect even as there are some genuine signs of revival in the economy.

The major push to growth is likely to come from the manufacturing and the services sector while agricultural growth is also likely to be supportive, the report added.
"We expect GDP growth to rise to 7.6 per cent in the first quarter of 2018-19 from 5.6 per cent in the same time last year. Lead indicators show strength in the manufacturing and the services sector," Abheek Barua, Chief Economist, HDFC Bank said in the note.
ALSO READ: GDP may accelerate to 7.4% this year as industries, monsoon pick up: RBI
Barua further noted that with the rise in the rabi output, agriculture growth is likely to grow by 4 per cent.
For the year, as a whole, HDFC Bank expects growth to rise to 7.3 per cent from 6.7 per cent in 2017-18.
Major risks to growth include rising oil prices and the impact of an uneven monsoon on agricultural production.
ALSO READ: Look beyond GDP numbers: The broader India story does not shine as much
Going ahead, the report noted that a sustainable recovery in private consumption and investment is needed for a growth revival.
"On the demand side, private consumption could gain some traction especially on the back of stronger demand as shown by lead indicators like domestic passenger traffic, retail credit and consumer durables," the report said adding "we expect government expenditure to continue playing an important role in supporting growth".