Riding on the back of better loan growth and asset quality, HDFC Bank posted an 18.1 per cent rise in net profit at Rs 10,342.20 crore for the quarter ended December 2021 as against Rs 8,758.29 crore in the same period a year ago.
The private lender’s gross non-performing assets (NPAs) were at 1.26 per cent of gross advances as of December 2021, against 1.35 per cent in September 2021 and 1.38 per cent (proforma approach) as of December 2020.
Net revenues (net interest income plus other income) increased by 12.1 per cent to Rs 26,627.0 crore for the third quarter from Rs 23,760.8 crore a year ago. Net interest income (interest earned less interest expended) for Q3FY22 grew by 13.0 per cent to Rs 18,443.5 crore from Rs 16,317.6 crore during the year-ago quarter.
Driven by relationship management, digital offering and breadth of products, advances grew by 16.5 per cent. Core net interest margin was at 4.1 per cent. “New liability relationships added during the quarter remained at an all-time high. This continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 123 per cent, well above the regulatory requirement, which positions the bank favourably to capitalise on growth opportunities,” the bank said.
Provisions and contingencies for the latest quarter were Rs 2,994 crore (consisting of specific loan loss provisions of Rs 1,820.6 crore and general and other provisions of Rs 1,173.4 crore), as against total provisions of Rs 3,414.1 crore for the quarter ended December 2020.
According to the bank, total advances were Rs 12,60,863 crore, an increase of 16.5 per cent. Retail loans grew by 13.3 per cent, commercial and rural banking loans grew by 29.4 per cent, and corporate and other wholesale loans grew by 7.5 per cent. Overseas advances constituted 3.4 per cent of total advances, it said. Total deposits as of December 2021 were Rs 14,45,918 crore, a rise of 13.8 per cent from last year.
The bank’s shares closed at Rs 1545.25, up 1.11 per cent, on the BSE on Friday. “The bank added 294 branches and 16,852 people over the last twelve months and made other investments to position ourselves and capitalise on the growth opportunity,” it said.