HDFC Bank Q3 net profit rises 33% to ₹7,417 crore

Net NPAs of the bank too increased to 0.48% of the assets in October-December 2019, against 0.42% a year ago.

Private lender HDFC Bank on Saturday reported a 32.8% growth in net profit to ₹7,416.5 crore for the third quarter ended December 31, driven by interest and non-interest income.

The bank had posted a net profit of ₹5,585.9 crore in the October-December quarter of the last financial year.

Total income rose to ₹36,039 crore during the December quarter against ₹30,811.27 crore in the year-ago period, HDFC Bank said in a statement.

“Net interest income (interest earned less interest expended) for the quarter ended December 31, 2019, grew to ₹14,172.9 crore from ₹12,576.8 crore for the quarter ended December 31, 2018, driven by growth in advances of 19.9%, and a growth in deposits of 25.2%,” it said.

The net interest margin for the quarter remained stable at 4.2%, it added.

During the quarter, gross non-performing assets (NPAs) rose to 1.42% of the total advances, compared with 1.38% at the end of the third quarter of 2018-19.

Net NPAs of the bank too increased to 0.48% of the assets in October-December 2019, against 0.42% a year ago.

As a result, the bank’s provisions (other than tax) and contingencies increased to ₹3,043.56 crore against ₹2,211.53 crore reported in the corresponding period of the previous financial year. Of this, provision of NPA was ₹2,883.6 crore alone, it said.

“The specific loan loss provisions in the current quarter include one-offs of approximately ₹700 crore, primarily relating to certain corporate accounts. Therefore, the Core Credit Cost ratio (i.e. excluding one-offs), was 0.92%, as compared to 0.9% in the quarter ending September 30, 2019 and 0.88% in the quarter ending December 31, 2018,” it said.

Other incomes of the bank increased to ₹6,669.3 crore against ₹4,921.01 crore in the same quarter last fiscal.

Total balance sheet size as of December 31, 2019 was ₹13,95,336 crore against ₹11,68,556 crore as of December 31, 2018.

Total deposits rose by 25.2% to ₹10,67,433 crore, while total advances grew by 19.9% to ₹9,36,030 crore.

The lender’s total capital adequacy ratio (CAR) as per Basel III guidelines was at 18.5% as on December 31, 2019 and 17.3% as on December 31, 2018 against a regulatory requirement of 11.075%, which includes a capital conservation buffer of 1.875%, and an additional requirement of 0.2% due to the bank being identified as a Domestic Systemically Important Bank (D-SIB).

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Printable version | Feb 23, 2020 2:30:47 PM |

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