Farm loan waivers has HDFC Bank doubling provisions, net up 20.2%

Jammu & Kashmir Bank Net up 32% at Rs 30 crore in Apr-June

Jammu & Kashmir Bank Net up 32% at Rs 30 crore in Apr-June

"Recoveries from agricultural advances were impacted during the quarter by borrower expectations of farm loan waivers arising out of policy announcement in certain sates", said Paresh Sukthankar, deputy managing director, HDFC Bank.

Four key states including Uttar Pradesh, which has a population around the same size as Brazil's, have recently said they would waive off billions of dollars in farm loans to offer relief to farmers reeling from losses caused by bad weather.

As of June 30, HDFC Bank's gross non-performing assets (NPAs) increased marginally to 1.24 per cent of gross advances as against 1.04 per cent at the end of first quarter of the last fiscal.

The bank said that its gross NPAs rose from 1.04% as of June 2016 to 1.24% at the end of June 2017.

"We'll have to see how things pan out in terms of there being clarity on what are the waivers and what therefore are customers, farmers, going to be able to repay", he said.

Profit growth back in 20s: With 20.2 per cent growth for June quarter, HDFC Bank again hit high-speed growth.

Morgan Stanley opts for Frankfurt as new post-Brexit hub
Savills expects prime central London property values to stagnate this year and next before increasing by 8 per cent in 2019. Bank of America now has 700 staff in Dublin and 6,500 in the United Kingdom , of which 4,500 are based in London.

With its consistent profit growth and strong focus on retail, HDFC Bank has stood out among Indian lenders which are battling slower loan growth and a surge in soured assets.

The HDFC Bank stock was trading higher by 1.74 per cent at Rs 1,733 on the BSE.

The higher bad loans had the bank making higher provisions which nearly doubled, which led it miss the street estimate on the bottomline.

Sukthankar said the bank made extra provisions higher than regulatory requirements for the telecom and the agri sectors, among others.

Net interest income (interest earned minus interest expended) grew 12.5% to Rs 712 crore from Rs 633 crore in previous year quarter. Total deposits grew 17 per cent.

Advances as of June 2017, were at Rs 580,976 crore, growing by 23.4% yoy.

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