Pedestrians walk past a HDFC Bank Ltd. bank branch in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Q3 Results: HDFC Bank’s Profit Meets Estimates

HDFC Bank Ltd.’s profit for the three months ended December met estimates due to stable asset quality.

Net profit rose 20.3 percent year-on-year to Rs 5,586 crore, the country’s largest private lender by market value said today. That compares with the Rs 5,611-crore consensus estimate of analysts tracked by Bloomberg.

Net interest income rose 22 percent to Rs 12,576 crore over last year, marginally lower than the Rs 12,709-crore estimate. Net interest margin was flat at 4.3 percent compared with the previous quarter.

“The lender's robust transaction accounts should contribute to margin outperformance while non-bank rivals struggle to contain funding costs,” Bloomberg Intelligence had said earlier in a report.

Key Highlights

  • Gross non-performing assets ratio increased to 1.38 percent from 1.33 percent in the previous quarter.
  • Net NPA ratio increased marginally to 0.42 percent from 0.40 percent in the previous quarter.
  • Provisioning rose more than 20 percent sequentially to Rs 2,211.5 crore, including a contingent provisioning of Rs 322.4 crore, the bank said.

There was no divergence observed by the Reserve Bank of India for the year ended March 2018 in respect of the asset classification and provisioning under the extant prudential norms on income recognition, asset classification and provisioning pertaining to advances, HDFC Bank said in a statement.

The stock has risen over 9 percent over the last one year, driving the NSE Bank Nifty up 3.46 percent in the same period.

Q3 Results: HDFC Bank’s Profit Meets Estimates