HDFC Bank Q3 Results | 4 big takeaways from the earnings – Moneycontrol

HDFC Bank, the country’s largest private-sector lender, on January 14 reported strong double-digit growth in its net profit and a healthy jump in consolidated advances.

Here are key four highlights from the bank’s earnings report card:

Net profit jumps

The lender reported a 19.9 percent jump in its consolidated net profit for the quarter ended December 2022. Beating market estimates, it reported a net profit of Rs 12,698 crore, an increase of 18.5 percent over the quarter ended December 31, 2022.

The bank’s December quarter net revenue grew by 18.3 percent to Rs 31,488 crore from Rs 26,627 crore last year.

Net interest income (NII), or the difference between interest earned and interest expended, grew by 24.6 percent to Rs 22,987 crore from Rs 18.443 crore for the quarter ended December 31, 2022.

Aggressive deposit growth

Total deposits of the bank showed healthy growth and were at Rs 17,33,204 crore, increasing by 19.9 percent.

Current Account Savings Accounts (CASA) deposits grew by 12.0 percent with savings account deposits at Rs 5,35,206 crore and current account deposits at Rs 2,27,745 crore.

The lender’s time deposits grew to Rs 9,70,253 crore, increasing by 26.9 percent over the corresponding quarter of the previous year. Cheaper CASA deposits comprised 44.0 percent of total deposits as of December 31, 2022.

Slight improvement in asset quality

The bank’s asset quality for the quarter ended December 2022 was slightly improved from the corresponding quarter last year.

Gross non-performing assets (NPAs) were at 1.23 percent as against 1.26 percent on December 31, 2021. Net NPAs were at 0.33 percent of net advances, from 0.37 percent last year.

Capital ratios remain healthy

For the quarter ended December 2022, the bank’s total Capital Adequacy Ratio (CAR) was at 19.4 percent, as against a regulatory requirement of 11.7 percent.

Tier 1 CAR was at 17.2 percent, compared to 18.4 percent last year.