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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.

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

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.