Private sector lender HDFC Bank on Saturday posted a standalone net profit of Rs 12,259 crore for the three months ended December, 19% higher year-on-year due to a drop in its provisions. The bank’s Q3 profit came in higher than the Bloomberg estimate of Rs 11,815 crore.
The bank reported a 6% y-o-y decline in its provisions to Rs 2,806 crore.
The bank’s pre-provisioning operating profit (PPOP) stood at Rs 19,024 crore, up 13% y-o-y despite only a 4% increase in its non-interest income, which was at Rs 8,500 crore in Q3FY23. The 75% decline in the lender’s trading income was offset by a jump in its fee and foreign exchange income.
The bank’s net interest income (NII) improved by 25% to Rs 22,988 crore during the quarter, led by robust loan growth. Its core net interest margin (NIM) was at 4.1% as of December 31, unchanged year-on-year.
Total advances stood at Rs 15.1 trillion as of December 31, higher by 19.5% y-o-y, led by broad-based growth across segments such as retail, rural and corporate. Overseas advances consisted of 2.8% of total advances, the bank said.
On the liabilities side, the bank’s total deposits jumped 20% y-o-y to Rs 17 trillion as of December 31, led by an increase in time deposits, which grew by 27% y-o-y to Rs 9.7 trillion. Current account, savings account (CASA) deposits grew by 12% y-o-y to Rs 5.4 trillion.
The CASA ratio stood at 44% as of December 31 against 47.1% a year ago. Sequentially, the CASA ratio declined by 14 basis points (bps).
The bank’s total capital adequacy ratio as per the Basel-Ill norms stood at 19.4% as on December 31 against a regulatory requirement of 11.7%.
The gross non-performing asset (NPA) ratio stood at 1.23% as of December 31, down 3 bps y-o-y, while the net NPA ratio was at 0.33%, lower by 4 bps y-o-y.
The lender’s branch count as of December 31 stood at 7,183 with 51% branches in semi-urban and rural areas.
HDFC Securities, the broking arm of the bank, reported a revenue of Rs 505 crore in Q3FY23 against Rs 536 crore a year ago, while its net profit stood at Rs 203 crore against Rs 258 crore.
HDB Financial Services, its non-banking financial services subsidiary, announced a revenue of Rs 2,233 crore against Rs 1,982 crore in Q3FY23 and a net profit of Rs 501 crore compared with Rs 304 crore.