Net interest income for the quarter under review grew by 13 per cent to Rs 18,443.5 crore, up from Rs 16,317.6 crore a year ago.
The results were broadly in line with market expectations, which had pegged the on-year growth in net profit at 12-18 per cent and net interest income at 11-17 per cent.
Other income or non-interest revenue came in at Rs 8,183.6 crore, accounting for 30.7 per cent of net revenues for the quarter ended December 31, and showing growth of almost 10 per cent from Rs 7,443.2 crore over the same period a year ago.
The private lender’s advances grew at 16.5 per cent on-year while the core net interest margin was at 4.1 per cent, HDFC Bank said in a press release.
The bank’s liquidity coverage ratio was at 123 per cent for the quarter under review, well above regulatory requirements, positioning the bank favourably to capitalise on growth opportunities, the lender said.
In October-December, fees and commissions stood at Rs 5,075.1 crore as against Rs 4,974.9 crore a year ago, while foreign exchange and derivatives revenue came in at Rs 949.5 crore, up from Rs 562.2 crore over the same period a year ago.
Gain on sale or revaluation of investments was at Rs 1,046.5 crore in October-December, as against Rs 1,109 crore a year ago.
Miscellaneous income, including recoveries and dividends rose sharply to Rs 1,112.5 crore in October-December from Rs 797.1 crore a year ago.
ASSET QUALITY IMPROVES
The bank’s asset quality showed an improvement in the third quarter of the current financial year with the ratio of gross bad loans declining both on a sequential and aan annual basis.
As on December 31, 2021, HDFC Bank’s gross non-performing asset ratio was at 1.26 per cent, down from 1.35 per cent on September 30 and 1.38 per cent as on Dec 31, 2020.
The net non-performing asset ratio was at 0.37 per cent as on December 31.
HDFC Bank’s total provisions were at 172 per cent of gross NPAs as on December 31, 2021. Total provisions consist of specific, floating, contingent and general provisions.
Provisions and contingencies for the quarter under review were at Rs 2,994 crore, lower than Rs 3,414.1 crore a year ago.
Specific loan loss provisions were at Rs 1,820.6 crore, while general and other provisions were at Rs 1,173.4 crore, the bank said, adding that total provisions for the quarter included contingent provisions of around Rs 900 crore.
STRONG OPERATING METRICS
HDFC Bank’s total deposits as on December 31, 2021, were at Rs 14,45,918 crore, up 13.8 per cent from the same period a year ago.
Current account savings account deposits grew by 24.6 per cent as on December 31, with savings accounts deposits at Rs 4,71,029 crore while current account deposits were at Rs 2,10,195 crore.
Time deposits were at Rs 7,64,693 crore as on December 31, showing a growth of 5.6 per cent over the same period a year ago.
Accordingly CASA deposits were at 47.1 per cent of total deposits as on December 31.
For the quarter under review the private bank’s total advances grew 16.5 per cent on-year to Rs 12,60,863 crore.
In the loan mix, retail advances grew 13.3 per cent, commercial and rural banking loans by 29.4 per cent, while corporate and other wholesale loans grew 7.5 per cent. Overseas advances contributed to 3.5 per cent of total advances, HDFC Bank said.
For the first nine months ended December 31, 2021, the private bank’s total income was at Rs 1, 16,177.2 crore, up from Rs 1, 08,045.6 crore the same period a year ago.
Net revenues for the nine-month period were at Rs 75,009.7 crore, sharply up from Rs 65,370.4 crore for the nine months ended December 31, 2020.
Operating expenses were at Rs 9,851.1 crore for the quarter under review, registering an increase of almost 15 per cent from Rs 8,574.8 crore a year ago. Cost-to-income ratio in October-December was at 37 per cent.
The private bank’s total credit cost ratio declined to 0.94 per cent in October-December from 1.30 per cent a quarter ago and 1.25 per cent a year ago.
For the quarter under review, profit before tax was at Rs 13,782.0 crore, up 17.1 per cent from a year ago. The net profit for October-December took into account a taxation provision of Rs 3,439.8 crore, the bank said.