Will re-calibrate the rate of addition of branches, says HDFC Bank

HDFC Bank

The management of the HDFC Bank on January 22 said the bank will re-calibrate the rate of addition of branches.

“Will re-caliberate the rate of addition of branches,” the lender's management said during the post-Q3 earnings conference call.

In October-December quarter, HDFC Bank’s branch distribution network stood at 9,143, as compared to 9,092 branches in a quarter ago period, and 8,091 branches in a year ago period, according to an investor presentation.

Branch network on a quarterly basis has increased by 0.6 percent, and 13 percent on a yearly basis.

Of the total 9,143 branches, 34 percent branches are in semi-urban, 28 percent in metro, 21 percent in urban, and 17 percent in rural, presentation showed.

The bank’s 38 percent branches December quarter this fiscal year are 0-3 years old. This was followed by 24 percent 10-15 year old, and 17 percent 5-10 year old, the investor presentation added.

Earlier today, HDFC Bank reported its financial results for the third quarter of FY25, posting a 2.2 percent year-on-year rise in standalone net profit to Rs 16,736 crore. The earnings surpassed Street expectations, with analysts projecting a net profit of Rs 16,650 crore, according to a Moneycontrol poll.

The bank's net interest income (NII), a key metric of the bank's earnings, grew 8 percent YoY to Rs 30,690 crore during the quarter, in line with expectations. Net Interest Margin (NIM) for the quarter was flat at 3.4 percent.

Last year, HDFC Bank's Chief Financial Officer, Srinivasan Vaidyanathan, had said that the bank aims to have a total of 13,000-plus branches in the next three-five years.

Additionally, Vaidyanathan highlighted that branch and network reach is important for growing granular deposits. “The important aspect for our granular deposit growth is the reach. And we are expanding our reach to get the customers there,” he added.