MUMBAI: Private banks, led by HDFC Bank, reported an improvement in profit for the
quarter ended June 2024
, on the back of strong
loan growth
.
The country's largest private lender, HDFC Bank, reported a higher-than-expected
net profit
of Rs 16,174 crore, an increase of 35% over the corresponding quarter last year. Year-on-year numbers are not comparable due to the HDFC-HDFC Bank merger effective from July 1, 2023.
During its board meeting on Saturday, the bank approved the initial public offering of its subsidiary, HDB Financial Services.
HDBFS is required to be listed this fiscal year due to RBI scale-based regulations, which mandate finance companies to go public once they achieve a certain scale. While HDFC Bank's first quarter net profit was lower than Rs 16,511 crore in preceding quarter, it was more than what analysts had forecast.
Among other
private lenders
, Kotak Mahindra Bank reported a net profit of Rs 6,250 crore an increase of 81% from Rs 3,452 crore last year. A large part of the increase was because of a one-time gain of Rs 3,520 crore from a 70% sale of Kotak General Insurance to Swiss underwriter Zurich Insurance. Without the one-time gain, the profit would have been up 2%. Yes Bank reported a 46.7% jump in net profit to Rs 502 crore for the quarter ended June 2024. The increase in net profits were driven by a 41% drop in provisions to Rs 212 crore. Last year the bank cleaned up its books by selling bad loans to JC Flowers Asset Reconstruction Company.
RBL Bank, reported a 29% increase in net profit to Rs 372 crore for the quarter ended June 2024.
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