HDFC Bank reported Q3FY22 Earnings
Leading private sector lender HDFC Bank on January 15 clocked standalone net profit of Rs 10,342 crore for the December 2021 quarter, up 18 percent year-on-year backed by decline in bad loan provisions.
The profit in corresponding quarter last fiscal was at Rs 8,758.29 crore.
Net interest income, the difference between interest earned and interest expended, climbed 13 percent to Rs 18,444 crore in Q3FY22, with net interest margin at 4.1 percent for the quarter, and healthy credit growth of 16.4 percent.
Profit and net interest income grew by 17 percent and 4.3 percent on sequential basis in Q3.
HDFC Bank on January 4 had said advances for the quarter at Rs 12.6 lakh crore grew by 16.4 percent compared to year-ago period and the sequential growth was 5.1 percent. “Retail loan growth was 13.5 percent YoY (up 4.5 percent QoQ) and corporate loan book growth at 7.5 percent YoY (up 4.5 percent QoQ).”
The bank further said it registered 13.8 percent YoY growth (up 2.8 percent QoQ) in deposits at Rs 14.46 lakh crore with CASA deposits rising 24.6 percent YoY (up 3.5 percent QoQ) to Rs 6.81 lakh crore in December 2021 quarter. “CASA ratio stood at around 47 percent as of December 31, 2021, as compared to 43 percent as of December 2020 and 46.8 percent as of September 2021.”
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Provisions and contingencies for the quarter at Rs 2,994 crore declined 12.3 percent year-on-year, and dropped 23.7 percent over previous quarter, which comprised a specific loan loss provisions of Rs 1,820.6 crore, and general and other provisions of Rs 1,173.4 crore.
“Total provisions for the December quarter included contingent provisions of approximately Rs 900 crore,” said HDFC Bank.
The total credit cost ratio was at 0.94 percent for the quarter, said the bank. This was against 1.3 percent reported for September 2021 quarter and 1.25 percent for December 2020 quarter.
Asset quality improved further as the gross non-performing assets (GNPAs) as a percentage of gross advances fell 9 bps sequentially to 1.26 percent and net NPAs declined 3 bps QoQ to 0.37 percent at the end of December 2021.
“Total provisions (comprising specific, floating, contingent and general provisions) were 172 percent of the gross non-performing loans as on December 31, 2021,” said HDFC Bank.
The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 8,636 crore as of December 2021.
Pre-provision operating profit grew by 10.5 percent year-on-year to Rs 16,776 crore and other income (non-interest income) increased by 9.94 percent to Rs 8,183.55 crore for the December 2021 quarter.
The growth in other income was driven by forex & derivatives revenue, and recoveries & dividend, while fees & commissions, which contribute 62 percent to non-interest income, saw moderate growth YoY.
“Fees & commissions income at Rs 5,075.1 crore for the quarter grew by 2 percent, foreign exchange & derivatives revenue at Rs 949.5 crore increased by 68.8 percent, and miscellaneous income including recoveries & dividend at Rs 1,112.5 crore rose by 39.56 crore,” said the company in its BSE filing.
HDFC Bank share price settled higher at Rs 1,545.25 on the BSE, up 1.11 percent on Friday. The stock fell more than 3 percent since the beginning of December 2021 quarter, underperforming the benchmark index Bank Nifty and Nifty50 that gained 2.5 percent and 3.6 percent, respectively in the same period.