"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.
The bank had reported a net profit of Rs 22.88 crore in April-June 2016.
Profit growth back in 20s: With 20.2 per cent growth for June quarter, HDFC Bank again hit high-speed growth.
Total revenue also grew 43.46 per cent to Rs 1,478.46 crore as against Rs 1,030.54 crore in the corresponding quarter a year ago.
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After multiple quarters of its declining staff strength, total number of employees remained flat at over 84,000 in the reporting period and Sukthankar said the bank would continue with its efficiency efforts.
HDFC Bank on Monday reported stellar Q1 numbers, sending shares of the third most valued company on BSE almost 2 per cent higher. Higher provision includes Rs 121 crore set aside for its exposure to potentially stressful sectors even if it is standard.
Ashutosh Kumar Mishra, senior research analyst - banking & financials, Reliance Securities, said, "HDFC Bank has delivered a healthy performance on business growth and operating parameters front in the first quarter of 2017-18".
The advances of the bank grew 23.4% to Rs 580,975 crore and the retail assets were Rs 302,827 crore, forming about 56% of the total portfolio. Total deposits grew 17 per cent and was led by greater accretion of fixed deposits, which was the reason for the share of the low-priced current and savings account deposits falling to 44 per cent.