HDFC Bank Q3 result: Net profit jumps 20.1% on-year to Rs 4,642.6 crore, bad loans stable on-quarter

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Updated: January 19, 2018 12:42:15 PM

India's most valuable lender and the biggest private sector bank HDFC Bank reported a rise of 12.01% in the third-quarter net profit to Rs 4,642.6 crore while the bad loans for the quarter ended 31 December 2017 were almost stable.

Following the Q3 earnings, the stock of HDFC Bank was trading up 0.72% at Rs 1,945.7 on BSE. (Image: Reuters)

India’s most valuable lender and the biggest private sector bank HDFC Bank on Friday said that after providing Rs 2,457.3 crore for taxation, HDFC Bank earned a net profit of Rs 4,642.6 crore, an increase of 20.1% over the quarter ended 31 December 2016. HDFC Bank posted a net profit of Rs 3,865.33 crore in the October-December quarter in the financial year 2017-2018. On the bad loans front, the gross NPAs (non-performing assets) for the quarter ended 31 December 2017 came in at 1.29% from 1.26% in the July-September period of 2017-2018. Following the Q3 earnings, the stock of HDFC Bank was trading up 0.72% at Rs 1,945.7 on BSE. Shares of HDFC Bank surged as much as 1.34% to a record high of Rs 1,957.85 on Friday.

The gross NPAs were at 1.29% of the gross advances as on 31 December 2017 as against 1.26% as on 30 September 2017 and 1.05% as on 31 December 2016. Net NPAs were at 0.44% of net advances as on 31 December 2017. Provisions and contingencies for the quarter ended 31 December 2017 were at Rs 1.351.4 crore as against Rs 715.8 crore for the quarter ended 30 September 2017.

Other key figures in pointers

  1. Profit before tax for the quarter ended 31 December 2017 was up 20.5% to Rs 7,099.9 crore. HDFC Bank’s total income for the quarter ended 31 December 2017 was Rs 24,450.4 crore, up from Rs 20,748.3 crore for the quarter ended 31 December 2016.
  2. Net revenues (net interest income plus other income) increased by 23.9% to Rs 14,183.5 crore for the quarter ended 31 December 2017 from Rs 11,451.8 crore in the corresponding quarter of the previous year.
  3. Net interest income (net interest less interest expended) for the October-December period of 2017-2018 grew by 24.1% to Rs 10,314.3 crore from Rs 8,309.1 crore in the same period a year earlier, driven by average asset growth of 16.6% and a core net interest margin for the quarter of 4.3%.
  4. The total balance sheet size as of 31 December 2017 was Rs 9,49,079 crore as against Rs 8,28,020 crore as of 31 December 2016.
  5. Total deposits as of 31 December 2017 were at Rs 6,99,026 crore an increase of 10.1% over last year.
  6. HDFC Bank’s total capital adequacy ratio (CAR) as per Basel III guidelines was at 15.5% as on 31 December 2017 (15.9% as on 31 December 2016) as against the regulatory requirement of 10.25%.

Earlier yesterday, the market capitalisation of HDFC Bank topped Rs 5 lakh crore for the first time ever, following which HDFC Bank became third Indian company to enter Rs 5 lakh crore market cap club. Due to a sharp spike in the share prices of HDFC Bank on Thursday ahead of Q3 earnings, India’s most valuable private-sector lender HDFC Bank added as much as Rs 16,227.12 crore to Rs 5,06,045.4 in the market capitalisation from Rs 4,89,818.28 as per the closing price of Rs 1,891.1 on Wednesday. Now with a market capitalisation of over Rs 5 lakh crore, HDFC Bank is the third-largest Indian company with a market value of more than Rs 5 lakh crore. Ahead of HDFC Bank, there are India’s most valuable enterprise Reliance Industries and India’s largest IT company TataConsultancy Services.

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