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Country’s largest private sector lender, HDFC Bank, on Saturday has reported an 18 per cent jump in net profit in the October–December quarter (Q3FY22) aided by higher credit growth and lower provisions. The lender’s profit after tax was to the tune of Rs 10,342.2 crore, in line with the Street estimates, compared to Rs 8,758.29 crore in the corresponding quarter of previous financial year (FY21). Analysts at Bloomberg had estimated a net profit of Rs 10,136 crore.


Net interest income, which is the interest earned minus the interest expended, increased by 13 per cent to Rs 18,443.5 crore in Q3FY22 as compared to Rs 16,317.6 crore in Q3FY21, backed by a 16.5 per cent growth in advances. Net interest margin, a measure of profitability of the bank, stood at 4.1 per cent in the reporting quarter.


Other income, which includes fees and commissions, foreign exchange and derivative revenue, gain on sale of investments, and miscellaneous income, went up by 10 per cent to Rs 8,1183.6 crore versus Rs 7,443.2 crore in the corresponding quarter of the previous year. Hence, the net revenues of the bank, sum total of net interest income and other income, increased by 12 per cent to Rs 23,760.8 crore for the quarter ended December.


The lender’s provisions were down 12.3 per cent in the reporting quarter at Rs 2,994 crore as against Rs 3,414.1 crore in the corresponding period of previous financial year. In Q2FY22, the bank had made provisions to the tune of Rs 3,924.66 crore. The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 8,636 crore as on December 31, 2021.


Asset quality of the lender improved sequentially with gross non-performing assets ratio (GNPAs) at 1.26 per cent in Q3FY22 compared to 1.35 per cent in the previous quarter. Similarly, net NPAs improved to 0.37 per cent. According to the bank’s disclosures, under Reserve Bank of India’s (RBI) second restructuring window, loans worth Rs 18,019.85 crore have been restructured, of which Rs 14,564 crore were retail loans, Rs 1,566 crore were business loans to individual borrowers and Rs 1,889 crore were small business loans.


Advances of the lender grew by 16.5 per cent on a year–on– year basis to Rs 12.6 trillion, with retail loans growing by 13.3 per cent, commercial and rural banking loans growing by 29.4 per cent. On the other hand, corporate and wholesale loans grew by 7.5 per cent.


Total deposits at the end of December quarter stood at Rs 14.45 trillion, up 13.8 per cent over the corresponding in the previous year. Low-cost deposits grew by 24.6 per cent, with savings account deposits at Rs 4.71 trillion and current account deposits at Rs 2.10 trillion.

On Friday, HDFC Bank’s scrip on BSE closed 1% higher at Rs 1,545.








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