HDFC Bank on Saturday reported a standalone net profit of ₹16,174.75 crore for the quarter ended June 30, a fall of 2 per cent on a sequential basis and a gain of 35 per cent over the corresponding quarter in the previous year.

Though the bottomline came in line with analyst estimates, the year-on-year numbers are not comparable because of the reverse merger of HDFC with the bank in July 2023.

At its board meeting on Saturday, the directors of the private sector lender decided to list its subsidiary HDB Financial Services Ltd (HDBFS). This is because of the RBI regulations issued in October 2022 which say that upper layer NBFCs have to be listed within three years.

“The board of directors of the bank at its meeting provided an in-principle approval to initiate the process of listing of HDBFS through a potential initial public offer and seek necessary approvals from the regulatory authorities in this regard.

“Further, the board has delegated the powers to a committee of directors to, inter alia, undertake various steps in this regard,’’ HDFC Bank said.

The net profit came after provisions declined to ₹2,602.06 crore from ₹2,860.03 crore in the year-ago period and ₹13,511.64 crore in the preceding three months.

HDFC Bank said its core net interest income (interest earned less interest expended) for the quarter rose 26.4 per cent to ₹29,840 crore from ₹23600 crore for the quarter ended June 30, 2023.

There was an uptick in the amount of bad loans with the percentage of gross non-performing assets (NPAs) to gross advances standing at 1.33 per cent compared with 1.24 per cent in the previous quarter and 1.17 per cent in the same period of the previous year.

In absolute terms, gross NPA stood at ₹33,025.69 crore against ₹19,064.12 crore in the year-ago quarter.

During a concall, the bank said that the ratio of gross NPAs would be 1.16 per cent, excluding the NPAs in the agricultural segment.

HDFC Bank added that during the quarter its total deposits were at ₹23,79,100 crore, an increase of 24.4 per cent over June 30, 2023.

Low-cost CASA (current and saving account) deposits grew 6.2 per cent with savings account deposits at ₹5,96,400 crore and current account deposits at ₹2,67,300 crore.

Yes Bank net up 46%

Yes Bank on Saturday reported a 46.7 per cent growth in net profit at ₹502.43 crore helped by lower provisions.

It had posted a net profit of ₹342.52 crore in the corresponding quarter of the previous year.

Provisions at the bank declined to ₹211.77 crore from ₹360.60 crore a year ago.

Yes Bank MD and CEO Prashant Kumar said it is targeting a loan growth of 16-17 per cent for 2024-25.