HDFC Bank Q3 net profit rises 33% to Rs7,416 cr
20 January 2020
HDFC Bank has reported a 32.8 per cent growth in net profit to Rs7,416.5 crore for the third quarter ended 31 December compared with a net profit of Rs5,585.9 crore in the October-December quarter of the previous financial year.
The private sector lender said the higher profits were driven by interest and non-interest income.
Total income rose to Rs36,039 crore during the October-December 2-19-20 quarter against Rs30,811.27 crore in the year-ago quarter, HDFC Bank said in a statement.
"Net interest income (interest earned less interest expended) for the quarter ended 31 December 2019, grew to Rs14,172.9 crore from Rs12,576.8 crore for the quarter ended 31 December 2018, driven by growth in advances of 19.9 per cent, and a growth in deposits of 25.2 per cent," it said.
Net interest margin for the October-December 2019-20 quarter remained stable at 4.2 per cent, it added.
During the quarter, gross non-performing assets (NPAs) of the bank rose to 1.42 per cent of the total advances, compared with 1.38 per cent at the end of the third quarter of 2018-19.
Net NPAs of the bank too increased to 0.48 per cent of the assets in October-December 2019, against 0.42 per cent a year ago.
The bank's provisions (other than tax) and contingencies increased to Rs3,043.56 crore against Rs2,211,53 crore reported in the corresponding period of the previous financial year. Of this, provision of NPA alone was Rs2,883.6 crore, it said.
The specific loan loss provisions in the current quarter include one-offs of approximately Rs700 crore, primarily relating to certain corporate accounts. Therefore, the core credit cost ratio (ie, excluding one-offs), was 0.92 per cent, as compared to 0.90 per cent in the quarter ending 30 September 2019 and 0.88 per cent in the quarter ending 31 December 2018," it said.
Other incomes of the bank increased to Rs6,669.3 crore against Rs4,921.01 crore in the same quarter last fiscal.
Total balance sheet size as of 31 December 2019 was Rs13,95,336 crore against Rs11,68,556 crore as of 31 December 2018.
HDFC bank’s total deposits rose 25.2 per cent to Rs10,67,433 crore, while total advances grew by 19.9 per cent Rs936,030 crore.
The lender's total capital adequacy ratio (CAR) as per Basel III guidelines was at 18.5 per cent as of 31 December 2019 (17.3 per cent as of 31 December 2018) against a regulatory requirement of 11.075 per cent, which includes a capital conservation buffer of 1.875 per cent, and an additional requirement of 0.20 per cent due to the bank being identified as a Domestic Systemically Important Bank (D-SIB).