HDFC Bank Q3 results: Net interest income (NII) for the quarter, which is defined as interest generated less interest expended, increased 23.9 percent year on year to Rs 28,470 crore from Rs 22,990 crore in the same quarter previous year.
HDFC Bank Ltd reported a 33.54 percent year-on-year (YoY) increase in standalone net profit for the December quarter, at Rs 16,372.54 crore, compared to Rs 12,259.49 crore in the same period last year. The profit amount was broadly consistent with Street predictions. Net interest income (NII) for the quarter, which is interest generated less interest expended, increased 23.9 percent year on year to Rs 28,470 crore from Rs 22,990 crore in the same quarter previous year. The NII increase was slightly below than analyst projections of 25%.
Pre-provision operating profit increased by 24.3 percent to almost Rs 23,650 crore. Provisions for the quarter increased to almost Rs 4,220 crore, up from Rs 2,810 crore the previous year. The private lender stated its core net interest margin (NIM) was 3.4% on total assets and 3.6% on interest-earning assets.
Gross non-performing assets accounted for 1.26 percent of gross advances as of December 31, 2023, compared to 1.34 percent on September 30, 2023 and 1.23 percent on December 31, 2022. As of December 31, net nonperforming assets accounted for 0.31 percent of net advances. Non-interest revenue for the quarter ended December 31, 2023, was over Rs 11,140 crore, compared to Rs 8500 crore in the same quarter ended December 31, 2022. Fees and commissions, one of the four components of other income, were Rs 6,940 crore, up from Rs 6,050 crore last year.
Foreign exchange and derivatives income was Rs 1210 crore, up from Rs 1,070 crore last year; net trading and mark-to-market gain was Rs 1,470 crore, up from Rs 260 crore the previous year. Miscellaneous income, comprising recoveries and dividends, was Rs 1,520 crore versus Rs 1,110 crore.
HDFC Bank said its operational expenses increased by 28.1% to Rs 15,960 crore from Rs 12,460 crore in the same quarter last year. The cost-to-income ratio for the quarter was 40.3%. According to Basel II rules, the bank’s overall capital adequacy ratio (CAR) was 18.4%, down from 19.4% the previous year. This is contrary to the regulatory threshold of 11.7%. As of December 31, 2023, HDFC Bank’s distribution network consisted of 8,091 branches and 20,688 ATMs in 3,872 cities and towns, compared to 7,183 branches and 19,007 ATMs in 3,552 cities and towns on December 31, 2022. A total of 52% of its branches were located in semi-urban and rural areas.
“In addition, we have 15,053 business correspondents, largely staffed by Common Service Centers (CSC). The number of staff stood at 2,08,066 as of December 31, 2023 (compared to 1,66,890 as of December 31, 2022),” the bank stated in a BSE filing.
Domestic retail loans increased by 111.1 percent, commercial and rural banking loans increased by 31.4%, and corporate and other wholesale loans increased by 11.2 percent (excluding non-individual loans of eHDFC Ltd. at about Rs 98,900 crore). Overseas advances constituted 1.7% of overall advances.
Click here to check out the latest post on Instagram.
Also read: Top 5 Podcasts Every Future Business Owner Should Listen To
image source: google
