HDFC Bank Q3 Results: Net Profit Rises 18%, Meets Estimates
HDFC Bank’s net profit rose 18% over the year earlier to Rs 10,342 crore in the three months ended December.
HDFC Bank Ltd.’s net profit rose in the third quarter on higher total income and lower provision.
India’s largest private sector lender saw its net earnings increase 18% over the year earlier to Rs 10,342 crore in the three months ended December, according to its exchange filing. That compares with the Rs 10,136-crore consensus estimate of analysts tracked by Bloomberg.
Its net interest income, or core income, rose 13% year-on-year to Rs 18,443 crore.
Other income jumped 10% to Rs 8,183.6 crore.
The private lender’s asset quality improved during the reported quarter.
Its gross non-performing asset ratio fell to 1.26%, down 9 basis points sequentially.
Net NPA ratio also declined 3 basis points over the preceding three months to 0.37%.
Total provisions during the quarter fell 12.3% year-on-year to Rs 2,994 crore.
The bank, as on Dec. 31, had restructured retail loans worth Rs 14,564 crore under the Reserve Bank of India’s second Covid-19 restructuring scheme. Individual business loans worth Rs 1,566 crore and small business loans worth Rs 1,889 crore were also restructured under the extended scheme announced in May 2021.
Total deposits for HDFC Bank rose 13.8% from a year ago to Rs 14.46 lakh crore.
Current account-savings account deposits comprised 47.1% of total deposits.
Total advances rose 16.5% year-on-year to Rs 12.6 lakh crore.
Retail loans rose 13.3%, commercial and rural banking loans jumped 29.4% and corporate loans increased 7.5% from a year ago.
HDB Financial Services
HDFC Bank’s non-banking finance arm, HDB Financial Services Ltd., reported a net profit of Rs 304 crore in the third quarter compared with a loss of Rs 146 crore a year ago. Its net revenue rose 15% from a year ago to Rs 1,982 crore.
Stage-3 loans, or those which were overdue by more than 90 days, comprised 6.05% of the total loan book. HDB Financial’s loan book stood at Rs 60,478 crore as on Dec. 31 compared with Rs 60,068 crore a year ago.
Shares of HDFC Bank closed 1.03% higher on Friday against a flat Nifty 50.