HDB Financial Services Limited (HDBFSL) is a non-deposit taking non-bank finance firm ('NBFC') that provides loans and asset financing to individuals, developing businesses, and micro enterprises. As of June 30, 2021, the Bank owned 95.1% of HDBFSL.
As previously stated, due to the country being hit by a "second wave" of COVID-19, economic activity were halted for over two-thirds of the quarter. These interruptions resulted in a decline in loan originations and collection efficiency. As a result, company volumes and revenues have been subdued, while provisioning has increased.
As of June 30, 2021, the overall loan book stood at 57,390 crore, up from 56,613 crore on June 30, 2020. At 242 percent, the liquidity coverage ratio was strong, substantially over the statutory limit.
HDBFSL's net income was 1,655.8 crore for the quarter ended June 30, 2021, compared to 1,609.7 crore for the quarter ended June 30, 2020. Pre-provision Operating Profit (PPOP) was 643.6 crore in the quarter ended June 30, 2020, compared to 759.9 crore in the previous quarter.
Provisions and contingencies were 472.4 crore for the quarter ended June 30, 2020, compared to 453.5 crore for the same period last year. Profit after tax was 130.6 crore in the quarter ended June 30, 2021, down from 232.7 crore in the quarter ended June 30, 2020.
Gross non-performing assets (NPA) as of June 30, 2021 were 7.75 percent, up from 2.86 percent on June 30, 2020 and 3.89 percent on March 31, 2021.
Total CAR was 19.8%, while Tier-I CAR was 14.9%. HDBFSL has 1,321 branches as of June 30, 2021, spread in 957 cities and municipalities.
HDFC Bank Ltd's shares closed at Rs.1521.7 on the BSE, up from the previous closing of Rs.1520.5. 91268 shares were exchanged during the day in approximately 4591 deals.
The stock traded between an intraday high of Rs. 1530 and a low of Rs. 1519.35. The day's net revenue was Rs. 139097555.