HDFC Bank booked a net profit of ₹3,865.3 crore in the third quarter of this fiscal (FY17), an increase of 15.1 per cent over the year-ago quarter (₹3,356.8 crore). This was despite the banking sector facing the pangs of demonetisation.

This was possible due to a robust increase in net interest income (NII) of 17.6 per cent to ₹8,309 crore, from ₹7,068.5 crore in the year-ago quarter.

Net interest margin however, declined 20 basis points year-on-year (y-o-y) to 4.1 per cent.

Paresh Sukhtankar, Deputy MD, said: “Growth in CASA (current account savings account) deposits, which was growing by 18 per cent until the September quarter on a year-on-year-basis, grew by more than double at 37 per cent in the December quarter due to demonetisation. In addition, there was moderation in loan growth besides an impact in sentiment.”

Provisions for bad loans increased marginally to ₹715.8 crore (₹653.9 crore in the year-ago quarter).

The total assets (balance sheet size) of HDFC Bank grew to over ₹8.28 lakh crore in the December quarter at 18.3 per cent y-o-y from over ₹6.99 lakh crore.

Of this, deposits grew at a faster clip of 21.1 per cent to ₹6.34 lakh crore. The surge in deposits was after considering the maturity of $3 billion worth FCNR deposits, which was swapped with the RBI at a concessional rate.

Total advances for the December quarter stood at over ₹4.95 lakh crore. Domestic advances grew 17.5 per cent to ₹4.77 lakh crore.

The domestic loan mix between retail and wholesale customers was 55:45

Bad loans (gross non-performing assets) rose eight basis points to 1.05 per cent. Net NPA grew three basis points to 0.32 per cent.

Capital adequacy ratio of the bank as per Basel-III norms stood unchanged at 15.9 per cent.

The number of employees y-o-y increased to 90,421 from 84,619.

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