HDFC Bank reported an 18 per cent year-on-year (y-o-y) increase in standalone net profit in the third quarter on the back of healthy growth in net interest income and other income even as loan loss provisions declined.
India’s largest private sector bank recorded a net profit of ₹10,342 crore in the reporting quarter (October-December 2021) against ₹ 8,758 crore in the year ago period.
Net interest income (difference between interest earned and interest expended) was up 13 per cent y-o-y at ₹ 18,443 crore (₹16,318 crore in the year ago quarter).
Other income, comprising commission income from non-fund based banking activities, fees, earnings from foreign exchange and derivative transactions, profit and loss (including revaluation) from investments, dividends from subsidiaries and recoveries from accounts previously written off, was up 10 per cent y-o-y at ₹ 8,184 crore (₹ 7,443 crore).
Standalone operating profit was up about 10.47 per cent y-o-y at ₹ 16,776 crore (₹ 15,186 crore).
Provisions and contingencies declined about 12 per cent y-o-y to ₹ 2,994 crore (consisting of specific loan loss provisions of ₹ 1,820.60 crore and general and other provisions of ₹ 1,173.40 crore) as against total provisions of ₹ 3,414 crore in the year ago quarter.
Total provisions for the reporting quarter include contingent provisions of about ₹ 900 crore.
Total credit cost ratio improved to 0.94 per cent as compared to 1.30 per cent in the preceding quarter and 1.25 per cent in the year ago quarter.
Core net interest margin was at 4.1 per cent, unchanged from the preceding quarter.
Total deposits up
Total deposits increased by 13.75 per cent y-o-y to ₹ 14,45,918 crore as at December-end 2021 against ₹ 12,71,124 crore as at December-end 2020.
Low-cost current account, savings account (CASA) deposits increased to 47.1 per cent of total deposits as at December-end 2021 against 46.8 per cent as at September-end 2021.
Total advances rose by 16.50 per cent y-o-y to ₹ 12,60,863 crore as at December-end 2021 against ₹ 10,82,324 crore as at December-end 2020.
Retail loans grew by 13.3 per cent y-o-y, commercial and rural banking loans grew by 29.4 per cent y-o-y and corporate and other wholesale loans grew by 7.5 per cent. Overseas advances constituted 3.4 per cent of total advances (3.5 per cent in the preceding quarter).
During the reporting quarter, the Bank transferred 9,881 loan accounts aggregating ₹262.45 crore (principal outstanding) to Asset Reconstruction Companies (ARCs) for an aggregate consideration of ₹ 141.10 crore. Investment made in Security Receipts (SRs) was ₹119.94 crore.
HDFC Bank reported a 21 per cent y-o-y increase in consolidated net profit at ₹10,591 crore (₹ 8,769 crore). Consolidated results include the results of HDFC Securities and HDB Financial Services.