Is it true that the NPAs of HDFC Bank have gone up in the Dec-21 quarter results?

In relative terms the answer is yes, however in absolute terms the total gross NPA percentage is still very low for HDFC Bank compared to other banks in the industry. Gross NPAs of HDFC Bank have gone up from 0.81% to 1.26% on yoy basis. At the same time, the net NPAs also spiked from 0.09% to 0.37% yoy. While this may look optically very, high, it is small when you look at the profit and NIM numbers of HDFC Bank. Here is the review.

HDFC Bank reported 18% rise in standalone net profits for the Dec-21 quarter at Rs.10,342 crore. The aggregate total of net interest income (NII) and other income was up 12% at Rs.26,627 crore. In terms of yoy growth, the NII grew by 13% at Rs.18,444 crore while the net interest margins or NIMs were relatively stable and static at 4.1%. The higher profits were also helped by the 12% lower provisioning at Rs.2,994 crore. NPAs are small.