An HDFC Bank Ltd. logo sits on a bank branch in Mumbai, India. (Photographer: Abhijit Bhatlekar/Bloomberg News)

HDFC Bank Net Profit Meets Estimates; Asset Quality Stable

HDFC Bank Ltd.’s quarterly profit rose on the back of stable asset quality as it recovered from farm loan waiver-related slippages in the previous three months.

Net profit rose 20 percent to Rs 4,151 crore in the quarter ended September over the year-ago period, aided by a healthy loan book and lower credit costs. Analysts tracked by Bloomberg had pegged the profit at Rs 4,171 crore.

Gross non-performing assets for the quarter rose 6.3 percent to Rs 7,703 crore sequentially, the country’s largest lender by market value said in an exchange filing. Bad loans stood at 1.26 percent of total assets, as opposed to 1.24 percent in the previous three months.

The bank’s loan book grew 22.3 percent to Rs 6.05 lakh crore over a year ago. Retail and wholesale loans rose 21.6 percent and 23.6 percent, respectively.

HDFC Bank  Net Profit Meets Estimates; Asset Quality Stable

Other Highlights

  • Net interest income, or the core income of the bank, increased 22 percent to Rs 9,751 crore.
  • Net interest margins dropped marginally to 4.3 percent from 4.4 percent, year-on-year.
  • The lender slashed its provisions for bad loans by 5.3 percent quarter-on-quarter to Rs 1,476 crore as it has a lower exposure to stressed borrowers compared to other corporate lenders.
  • Current and savings accounts contributed 43 percent of HDFC Bank’s deposits as of September.
  • Capital adequacy ratio, expressed as a percentage of a bank's risk weighted credit exposure, was 15.1 percent.