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

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.