MUMBAI – HDFC Bank reported strong financial results for the third quarter, with a 34% year-on-year (YoY) growth in net profit to Rs 16,372.54 crore. This amount exceeded the forecasts of ETNow’s analysts, who predicted a net profit of Rs 15,846 billion.
The net interest revenue (NII), which represents the difference between interest earned and expended, increased by 24% year on year to Rs 28,471.34 crore. However, it fell little short of the expected Rs 29,067 million.Profit increased by 2.5% sequentially, while net interest income rose by roughly 4%.
Reserves for the period ending in December increased to Rs 4,217 crore, up from Rs 2,806 crore a year earlier and Rs 2,904 crore in the preceding quarter.
As of December 31, the Gross Non-Performing Assets (GNPA) ratio was 1.26%, up little from 1.23% a year ago but up from 1.34% the previous quarter. The net non-performing assets (NNPA) ratio was 0.31%, down from 0.33% a year ago and 0.35% the preceding quarter.
The core net interest margin was 3.4% for total assets and 3.6% for interest-earning assets. Other income for the quarter was reported at Rs 11,137 crore, a significant increase from Rs 8,500 crore a year earlier.
Operating expenses for the quarter were Rs 15,961 crore, compared to Rs 12,464 crore in the same period previous year. The cost-to-income ratio in the quarter was 40.3%.
The pre-provision operating profit (PPoP) increased by more than 24% year on year to Rs 23,647.30 crore. The total credit cost ratio as of December 31 was 0.49%, up from 0.74% a year before.
As of December 31, HDFC Bank’s entire balance sheet size was Rs 34.93 lakh crore, a significant rise from Rs 22.95 lakh crore the previous year. Total deposits increased by about 28% YoY to Rs 22.14 lakh crore. In the latest quarter, current account savings account (CASA) deposits climbed by 9.5%, and time deposits increased byAn outstanding 42%.
Gross advances as of December 31 was Rs 24.69 lakh crore, a phenomenal increase of more than 62% over the same period the previous year.
Before the earnings announcement, HDFC Bank shares closed 0.4% higher on the National Stock Exchange, at Rs 1,679.15.