HDFC Bank Q3 Results: PAT rises 34% YoY to Rs 16,373 crore, Tops estimates

HDFC Bank reports strong Q3 results, beating ETNow poll. Net profit rose 34% YoY to Rs 16,372.54 crore. NII increased 24% YoY to Rs 28,471.34 crore but fell short of estimates. Provisions rose to Rs 4,217 crore. Core net interest margin at 3.4%. PPoP grew 24% YoY to Rs 23,647.30 crore. Balance sheet size for the December quarter at Rs 34.93 lakh crore. Total deposits rose 28% YoY to Rs 22.14 lakh crore.

HDFC Bank on Tuesday reported a good set of numbers for the December quarter, with the net profit rising nearly 34% year-on-year (YoY) to Rs 16,372.54 crore. The bottom line was higher than an ETNow poll of Rs 15,846 crore.

Net interest income (NII), the difference between interest earned and interest expended, rose 24% YoY to Rs 28,471.34 crore. However, the NII figure trailed estimates of Rs 29,067 crore.

Sequentially, the profit rose 2.5%, and net interest income grew by nearly 4%.

Provisions in the December quarter increased to Rs 4,217 crore from Rs 2,806 crore a year ago, and Rs 2,904 crore a quarter ago.

The gross non-performing assets (GNPA) ratio as of December end, was 1.26%, compared to 1.23% a year ago, and 1.34% a quarter ago. Net non-performing assets (NNPA) ratio was 0.31% as of December end, compared to 0.33% a year ago, and 0.35% a quarter ago.

The core net interest margin was at 3.4% on total assets, and 3.6% based on interest-earning assets.

Other income for the quarter was Rs 11,137 crore, compared to around Rs 8,500 crore a year ago.

Operating expenses for the quarter stood at Rs 15,961 crore, compared to Rs 12,464 crore a year ago. The cost-to-income ratio for the quarter was at 40.3%.

The pre-provision operating profit (PPoP), grew by more than 24% YoY to Rs 23,647.30 crore.

The total credit cost ratio was 0.49% as of December end, compared to 0.74% a year ago.

Balance Sheet

The total balance sheet size of the lender as of December end, stood at Rs 34.93 lakh crore, compared to Rs 22.95 lakh crore a year ago.

Total deposits grew by nearly 28% YoY to Rs 22.14 lakh crore as of December end. Current account savings account (CASA) deposits grew by 9.5% in the last quarter and time deposits increased by 42%.

The gross advances as of December end was Rs 24.69 lakh crore, up more than 62% from the year-ago period.
Domestic retail loans more than doubled in the last quarter, while commercial and rural banking loans grew by over 31%.

The capital adequacy ratio as per Basel III guidelines, stood at 18.4% as of December end, much higher than the regulatory requirement of 11.7%.

Ahead of its earnings, shares of HDFC Bank ended 0.4% up on the National Stock Exchange at Rs 1,679.15.

Source: The ET