The country’s largest private sector lender – HDFC Bank – on Saturday reported a net profit of Rs 10,342 crore in the quarter ended December 2021. It marks an increase of 18 per cent from the same period last year. The jump in profit was aided by sharply lower provisioning for bad loans during the quarter.
Its provisions for contingencies declined 24 per cent sequentially to Rs 2,993.98 crore versus Rs 3,924.66 crore in the September quarter, its earnings release showed.
The bank’s asset quality saw a slight improvement during the third quarter of the current financial year. Its gross non-performing assets (NPAs) as a percentage of total advances came in at 1.26 per cent versus 1.35 per cent in the previous quarter. Its gross NPAs stood at Rs 16,013.55 crore.
Financial Highlights
The bank’s net revenues, the sum of NII, and other income increased by 12% to Rs 26,627 crore as against Rs 23,760.8 crore in Q3FY21.
Net interest income, the difference between interest earned and interest expended, grew by 13% to Rs 18,443.5 crore as compared to Rs 16,317.6 crore in December 2020.
The bank reported a consolidated net profit at Rs 10,591 crore, up 20.8 percent YoY. The consolidated advances of Rs 13,12,142 crore, an increase of 15.8 percent YoY.
HDFC Bank on January 4 had said advances for the quarter at Rs 12.6 lakh crore grew by 16.4 percent compared to the year-ago period and the sequential growth was 5.1 percent.
“Retail loan growth was 13.5 percent YoY (up 4.5 percent QoQ). The corporate loan book growth at 7.5 percent YoY (up 4.5 percent QoQ).”
Total deposits as of December 31 were Rs 14.46 lakh crore, an increase of 13.8% over December 31, 2020. Current account savings account (CASA) deposits grew 24.6% y-o-y. With saving account deposits at Rs 4.71 lakh crore and current account deposits at Rs 2.1 lakh crore.
Time deposits stood at Rs 7.65 lakh crore, an increase of 5.6% over the previous year. The CASA ratio stood at 47.1%, up from 43% for the corresponding quarter a year ago.
The bank added 294 branches and 16,852 people over the last 12 months. At the end of the December quarter the bank had 5,779 branches and 17,238 ATM machines in 2,956 cities, HDFC Bank said.
The bank’s NBFC subsidiary HDB Financial Services posted a net profit of Rs 304 crore in Q3FY22, as against a net loss of Rs 146 crore in Q3FY21. The total loan book grew by 0.68% y-o-y to Rs 60,478 crore as of December 31, 2021. As against Rs 60,068 crore as of December 31, 2020. Stage 3 loans, denoting the ratio of bad assets, were at 6.05% of gross loans, down from 6.1% in the September quarter.
On Friday, HDFC Bank’s scrip on BSE closed 1% higher at Rs 1,545