Page 39 - Banking Finance August 2024

ARTICLE

Develop Green Products: Offer financial products Regular Monitoring: Continuously monitor climate
that support sustainability, such as green bonds, sus- risk exposures and the effectiveness of mitigation
tainable loans, and ESG-linked investment products. measures. This includes tracking changes in risk
7. Enhance Operational Resilience profiles and emerging threats.
Ensuring the bank's operations can withstand climate Report Progress: Regularly report on climate risk
impacts is critical for long-term resilience: management efforts and progress towards
Upgrade Infrastructure: Enhance physical infrastruc- sustainability goals. This includes publishing detailed
ture and operational systems to be resilient to ex- reports and updates for stakeholders.
treme weather events and other climate impacts.
10.Foster Innovation and Collaboration
Business Continuity Planning: Integrate climate risk Innovation and collaboration can drive effective climate
considerations into business continuity and disaster risk mitigation:
recovery planning to ensure the bank can maintain Invest in R&D: Support research and development
operations during and after climate-related disrup- for innovative solutions to climate risks. This in-
tions. cludes developing new financial products, risk man-

8. Engage with Stakeholders agement tools, and sustainability initiatives.
Collaboration and communication with stakeholders are Collaborate with Peers: Join industry initiatives and
key to managing climate risks effectively: collaborate with other banks and financial institu-
Stakeholder Engagement: Engage with clients, in- tions to share best practices and drive collective
vestors, regulators, and civil society to understand action on climate risks.
their concerns and expectations regarding climate
risk management.
Conclusion
Educate and Train: Provide training and resources The impacts of climate change on Indian banks are profound
to staff to build awareness and capability in man-
and multifaceted, affecting asset quality, operational sta-
aging climate risks. This includes ongoing education
bility, and financial health. As climate risks become more
on climate science, risk management techniques, pronounced, banks must adopt proactive measures to miti-
and regulatory requirements.
gate these risks. By implementing comprehensive strategies,
9. Monitor and Report Progress banks can effectively manage climate risks, safeguard finan-
Continuous monitoring and transparent reporting are cial stability, and contribute to global efforts to combat cli-
essential for effective climate risk management: mate change.

HDFC Bank's Q1 net up 35%, interest income surges 26%

HDFC Bank reported a 35 per cent jump in its standalone profit after tax (PAT) at Rs 16,174.75 crore in the quarter
ended June 30, compared to Rs 11,951.77 crore in the year ago period. On a sequential basis, the bank's net profit
fell by 2 per cent in the April- June 2024 quarter. Net interest income (NII), which is interest earned less interest
expended, grew by 26.4 per cent to Rs 29,840 crore in Q1 FY2025, as against Rs 23,600 crore in the same quarter
of last fiscal. Net interest margin (NIM) stood at 3.7 per cent based on interest earning assets, and at 3.5 per cent
on total assets. In the reporting quarter, operating expenses increased by 18.2 per cent to Rs 16,620 crore, as
against Rs 14,060 crore during the corresponding quarter of the previous year. The cost- to- income ratio for the
quarter was at 41 per cent, the bank said. In July last year, HDFC Ltd got merged with HDFC Bank.
Gross non- performing assets (GNPA) were at 1.33 per cent of gross advances as on June 30, 2024 (1.16 per cent
excluding NPAS in the agricultural segment), as against 1.41 per cent on a pro forma merged basis as on July 1,
2023 (1.25 per cent excluding NPAS in the agricultural segment). Net non- performing assets were at 0.39 per cent
of net advances as on June 30, 2024. The lender's provisions and contingencies stood at Rs 2,600 crore billion as
against Rs 2,860 crore for the quarter ended June 30, 2023. The total credit cost ratio was at 0.42 per cent, as
compared to 0.70 per cent for the quarter ended June 30, 2023.

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