HDFC Bank logs 18% yoy growth in Q3 PAT to Rs10,342.2cr, net interest income rises 13% yoy, asset quality improves

17 Jan 2022 , 01:27 PM

Private bank major, HDFC Bank reported a net profit of Rs10,342.2cr for the quarter ending December 2021 (Q3FY22) increasing by 18.1% yoy. Net interest income (interest earned less interest expended) for the quarter under review grew by 13.0% to Rs18,443.5cr from Rs16,317.6cr for the quarter ended December 31, 2020.

Advances grew at 16.5% reaching new heights driven through relationship management, digital offering and breadth of products. The core net interest margin was at 4.1%. 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%, well above the regulatory requirement, which positions the Bank favourably to capitalise on growth opportunities.

Provisions and contingencies for the quarter ended December 31, 2021, were Rs2,994cr (consisting of specific loan loss provisions of Rs1,820.6cr and general and other provisions of Rs1,173.4cr) as against total provisions of Rs3,414.1cr for the quarter ended December 31, 2020. Total provisions for the current quarter included contingent provisions of approximately Rs900cr.

The total credit cost ratio was at 0.94%, as compared to 1.30% for the quarter ending September 30, 2021, and 1.25% for the quarter ending December 31, 2020.

Gross non-performing assets were at 1.26% of gross advances as of December 31, 2021, against 1.35% as of September 30, 2021, and 1.38% (Proforma approach) on December 31, 2020. Net non-performing assets were at 0.37% of net advances as of December 31, 2021.

At around 1.22 pm, HDFC Bank was trading at Rs1528 per piece down by 1.1% on Sensex. The stock was near the day’s low of Rs1523 per piece.