In a welcome development for customers, HDFC Bank, one of the country’s top private sector financial institutions, has increased its rates of interest on Fixed Deposits or FDs. HDFC Bank has increased its deposit rates to 6.85% for deposits which are lower than Rs. 1 crore. This represents an increase of 10 basis points. HDFC Bank has also increased interest rates on deposits with maturity periods between 1 and 2 ½ years to 7% which indicates a rise of 75 basis points.
Deposits have also been scaled up by 100 basis points for tenors between 2 and 5 years and stand at 7%. The net profits for HDFC Bank were a handsome Rs. 17, 486.75 crore in FY2017-18. HDFC had posted profits of Rs. 14, 549.66 crore in FY2016-17. The total income for this period for HDFC Bank was roughly Rs. 95, 461.66 crore which increased from the earlier tally of Rs. 81, 602.45 crore.
HDFC Bank had previously allocated Rs. 5, 927.49 crore for meeting contingencies and provisions which is higher as compared to Rs. 3, 593.30 crore kept aside for the financial year ending on the 31st of March, 2017. The rough NPAs (gross) for HDFC Bank were around Rs. 5, 885.66 crore as of the 31st of March, 2017 and this is now Rs. 8, 606.97 crore as of the 31st of March, 2018. The net NPA is Rs. 2, 601.02 crore which is higher than the earlier fiscal’s Rs. 1, 843.99 crore.