HDFC Bank Q3 PAT rises 18% YoY to Rs 12,259 cr

The private lender's net profit rose 18.54% to Rs 12,259.49 crore on 25.97% increase in total income to Rs 51207.61 crore in Q3 FY23 over Q3 FY22.

The bank's profit before tax (PBT) increased 17.67% year on year to Rs 16,217.63 crore in the quarter ended 31 December 2022.

The bank's provisions and contingencies (excluding tax provisions) declined 6.26% to Rs 2,806.44 crore in Q3 FY23 over Q3 FY22.

The bank's gross non-performing assets (NPAs) stood at Rs 18,763.90 crore as on 31 December 2022 as against Rs 18,301 crore as on 30 September 2022 and Rs 16,013.55 crore as on 31 December 2021.

The ratio of gross NPAs to gross advances stood at 1.23% as on 31 December 2022 as against 1.23% as on 30 September 2022 and 1.26% as on 31 December 2021.

The ratio of net NPAs to net advances stood at 0.33% as on 31 December 2022 as against 0.33% as on 30 September 2022 and 0.37% as on 31 December 2021.

Net interest income (interest earned less interest expended) for the quarter ended 31 December 2022 grew by 24.6% to 22,987.8 crore from 18,443.5 crore for the quarter ended 31 December 2021. Core net interest margin was at 4.1% on total assets, and 4.3% based on interest earning assets.

Pre-provision Operating Profit (PPOP) was at 19,024.1 crore. PPOP, excluding trading and Mark to Market losses, grew by 19.3% over the quarter ended 31 December 2021.

The total credit cost ratio was at 0.74%, as compared to 0.94% for the quarter ending 31 December 2021.

Total advances as of 30 September 2022 were 15,06,809 crore, an increase of 19.5% over 31 December 2021. Domestic retail loans grew by 21.4%, commercial and rural banking loans grew by 30.2% and corporate and other wholesale loans grew by 20.3%.

Total deposits showed a healthy growth and were at 17,33,204 crore as of 31 December 2022, an increase of 19.9% over 31 December 2021. CASA deposits grew by 12%. CASA deposits comprised 44% of total deposits as of 31 December 2022.

The bank's total capital adequacy ratio (CAR) as per Basel III guidelines (including profits for the nine months ended 31 December 2022) was at 19.4% as on 31 December 2022 (19.5% as on 31 December 2021).

HDFC Securities (HSL) is amongst the leading retail broking firms in India. As on 31 December 2022, the bank held 95.6% stake in HSL. For the quarter ended 31 December 2022, HSL's total revenue was at Rs 504.9 crore, as against Rs 535.6 crore for the quarter ended 31 December 2021. Profit after tax for the quarter was at Rs 203.2 crore, as against Rs 258 crore for the quarter ended 31 December 2021. As on 31 December 2022, HSL had 210 branches across 147 cities/ towns in the country.

HDB Financial Services (HDBFSL) is a non-deposit taking non-banking finance company (NBFC) offering wide range of loans and asset finance products to individuals, emerging businesses and micro enterprises. As on 31 December 2022, the bank held 94.9% stake in HDBFSL.

In Q3 FY23, HDBFSL's net revenue was at Rs 2,233.4 crore as against Rs 1,981.6 crore for the quarter ended 31 December 2021, a growth of 12.7%. Profit after tax for the quarter ended 31 December 2022 was Rs 501.2 crore compared to Rs 304 crore for the quarter ended 31 December 2021. The total loan book was Rs 65,103 crore as on 31 December 2022. Stage 3 loans were at 3.73% of gross loans. As on 31 December 2022, total CAR was at 20.5% with Tier-I CAR at 16%. As on 31 December 2022, HDBFSL had 1,421 branches across 1,020 cities / towns.

As of 31 December 2022, HDFC Bank's distribution network was at 7,183 branches and 19,007 ATMs/Cash Deposit & Withdrawal Machines (CDMs) across 3,552 cities / towns as against 5,779 branches and 17,238 ATMs / CDMs across 2,956 cities / towns as of 30 September 2021.

Shares of HDFC Bank rose 0.07% to end at Rs 1,600.85 on Friday, 13 January 2023.

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