26726In view of reduced inflation and expenses, will it be right to invest in IT stocks?

HDFC Bank on Saturday posted 18.17% year-on-year (YoY) growth in standalone net profit at Rs 8,186.51 crore for the quarter ended March 31. It had reported a profit of Rs 6,927.69 crore in the same quarter last year. Net interest income of the lender increased by 12.60% YoY to Rs 17,120.15 crore,
driven by advances growth of 14%, and a core net interest margin of 4.2%.

Provisions and contingencies of the lender increased by 24% YoY and 37% QoQ to Rs 4693.70 crore during the quarter under review. The asset quality of HDFC Bank deteriorated in the March quarter with the percentage of gross non-performing (NPA) assets spiked to 1.32% from 0.81% on QoQ basis. The figure stood at 1.26% in the March quarter last year. On the other hand, the percentage of net NPA also increased to 0.40% from 0.09% on QoQ basis.

Pre-provisioning operating profit (PPOP) grew by 19.90% YoY to Rs 15,532.80 crore. Shares of the company settled 0.12% lower at Rs 1428.45 on Friday.

Total deposits as of March 31 were Rs 13,34,060 crore, an increase of 16.30% over March 31 2020. CASA deposits grew by 27% with saving account deposits at Rs 403500 crore and current account deposits at Rs 212182 crore.

“The bank continues to hold provisions as on March 31, 2021 against the potential impact of Covid-19 based on the information available at this point in time and the same are in excess of the RBI prescribed norms. The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 5861 crore as on March 31. Total provisions were 153% of the gross non-performing loans as on March 31,2021,” HDFC Bank said in a release.