HDFC Bank is mum on the loans under moratorium⁠— profit jumps 20%, provision for bad loans spike 49%

• HDFC Bank's profit is up by 20% this quarter.
• The bank's asset quality seems to have taken a hit as ratio of bad loans increase.
• HDFC Bank's net interest income is also up by 17.8% on a yearly basis.

A 20% jump in HDFC Bank’s quarterly profit compared to a year earlier is good news but the lack of details on the loans under moratorium may raise eyebrows. This at a time when the amount of bad loans has risen, as expected.


The bank’s net topline has grown 17.8% as advances increase by 20.9% on a year-on-year basis and deposits expand by 24.6%. As predicted by analysts, HDFC Bank’s asset quality fell with the percentage of gross non-perorming assets (GPA) at 1.36%, which 10 basis points (bps) higher than a quarter ago.

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"For all such accounts where the moratorium is granted, the asset classification shall remain stand still during the moratorium period, that is, the number of days past-due shall exclude the moratorium period for the purposes of determining whether an asset is non-performing," said the bank in its filings. As of now the moratorium stands extended till August 31.