HDFC Bank's Profit Gains Amid Governance Concerns

HDFC Bank, India's largest private-sector lender, announced an 8.04% rise in consolidated net profit for the March quarter, amounting to Rs 20,350.76 crore. This announcement comes amid governance and ethical scrutiny due to non-executive chairman Atanu Chakraborty’s recent resignation.

CEO Sashi Jagdishan refrained from elaborating on Chakraborty's exit, citing a pending external legal investigation. The bank drew attention to risks from the West Asia conflict impacting small-business borrowers. Despite these uncertainties, the bank saw a 9.11% rise in standalone profit to Rs 19,221.05 crore, driven by a 12% growth in advances and maintaining a net interest margin of 3.38%.

Looking ahead, Jagdishan noted potential organizational changes in leadership roles, with an eye toward deputy MD Kaizad Bharucha. The bank's gross non-performing assets improved to 1.15%, indicative of stable asset quality. Non-interest income affected by regulatory measures reached Rs 13,250 crore.