India’s largest private sector lender HDFC Bank, today reported an 18.1% on-year rise in net profit during the fiscal third quarter. HDFC Bank’s standalone net profit stood at Rs 8,758 crore in the October-December quarter against Rs 7,416 crore in the same period last year. The bank’s net revenue was recorded at Rs 23,760 crore against Rs 20,842 crore from the year-ago period. On a consolidated basis, HDFC Bank’s net profit for the period under review was Rs 8,769 crore, against Rs 7,659 crore in the previous year.
HDFC Bank’s net interest income for the previous quarter grew 15.1% to Rs 16,317 crore helped by growth in advances, which was at 15.6%. The liquidity coverage ration of HDFC Bank was reported to be at 146%, well above the regulatory limit. Other income in the said period was at Rs 7,443 crore, 31.3% of the net revenue.
Pre-provisioning operation profit for the last quarter came in at Rs 15,186 crore, 17.3% higher on-year basis. HDFC Bank’s provisions during the quarter were Rs 3,414 crore of which Rs 691 crore were loan loss provisions while the reset was general provisions. Total deposits of the private sector lender were up 19% to Rs 12 lakh crore. Total advances as of December end stood at Rs 10.8 lakh crore an increase of 15.6%. Domestic advances grew 14.9%.
In terms of asset quality, HDFC Bank noted that gross and net non-performing assets were at 0.81% of gross advances and 0.09% of net advances. The lender said that if it had classified borrower accounts as NPAs despite the Supreme Court order to not declare accounts as NPAs, the gross NPA ratio would have been 1.38%.
HDFC Bank’s net interest income and net profits for the third quarter the current fiscal year have beaten the estimates of at least three domestic brokerage and research firms. Shares of the lender continue to perform strongly on the bourses, even after having surged 38% in the last three months. Brokerage firm Motilal Oswal and Emkay Global have a ‘Buy’ rating on the scrip with a positive outlook.