HDFC Bank Q3 Results: Net profit jumps 33.5% to Rs 16,372 crore; asset quality stable

HDFC Bank: The country's largest private sector lender, has registered a 2.5 percent sequential growth in net profit at Rs 16,372.54 crore for the quarter ended December FY24, partly impacted by higher bad loan provisions. Net interest income grew by 4 percent QoQ to Rs 28,471 crore during the quarter. Asset quality improved with gross non-performing assets falling 8 bps sequentially to 1.26 percent and net NPA declining 4 bps QoQ to 0.31 percent in Q3 FY24.

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HDFC Bank on January 16 reported a net profit of Rs 16,372 crore for the October-December quarter of 2023-24, which marks a 33.5 percent jump from Rs 12,259 crore clocked a year ago.

The net profit, at Rs 16,372 crore, is almost in line with the market estimates of Rs 16,427 crore. The net interest income (NII) of Rs 28,470 crore, which increased by 23.9 percent as compared to Rs 22,990 crore reported in the corresponding quarter of the previous fiscal. The NII, at Rs 28,470 crore, is lower as against the market estimates of Rs 29,554 crore.

The bank's gross non-performing assets (NPA) stood at 1.26 percent, up from 1.23 percent last year. On the other hand, net NPA for the quarter stood at 0.31 percent compared to 0.33 percent last year. Here, Srinivasan Vaidyanathan, Chief Financial Officer, HDFC Bank said that the bank has historically seen an improvement in its asset quality. "Historically, we have seen that our asset quality has improved and the current credit environment seems to be benign. The credit conditions seem to be quite good," Srinivasan said in the press conference after announcing the results.

The lender's provisions rose to Rs 4,216 crore, up by 50 percent. Here, Srinivasan said that the provision number include contingent provisions of around Rs 1,212 crore on account of investments in alternative investment funds.

Total advances of the bank jumped 62.4 percent to Rs 24.69 lakh crore. Domestic retail loans of the bank grew by 111 percent, commercial and rural loans of the bank grew by 31.4 percent and corporate and wholesale loans (excluding non-individual loans of eHDFC Ltd. of approximately Rs 98,900 crore) grew by 11.2 percent.

Additionally, Srinivasan said that the bank had a 97 basis points (bps) impact on the capital adequacy ratio (CAR) due to the increase in the risk weight assets on unsecured and other loans.

In the October-December FY24 quarter, total deposits of the bank jumped by 27.7 percent to Rs 28.47 lakh crore versus Rs 22.29 lakh crore in the corresponding quarter last year. Current account and savings account deposits grew by 9.5 percent with savings account deposits at Rs 5.79 lakh crore and current account deposits at Rs 2.58 lakh crore.

The shares HDFC Bank closed for trading at Rs 1678.95 apiece on BSE, 0.42 percent up.