- HDFC bank’s results are not comparable on a year-to-year basis as it merged with its parent HDFC in July 2023
- The Bank’s net revenue grows by 6.3% to ₹421.1 billion
- HDFC Bank’s provisions for bad loans and other contingencies rises 17% sequentially to ₹54 billion
NE BUSINESS BUREAU
MUMBAI, JAN 22
HDFC Bank, the country’s biggest private lender, on Wednesday reported third-quarter profit largely in-line with analysts’ estimates, helped by an increase in net interest income (NII).
The bank posted a standalone net profit of ₹167.4 billion for the quarter ended December 31, down about 0.5% from the previous quarter.
The bank’s results are not comparable on a year-to-year basis as it merged with its parent HDFC in July 2023.
Net interest income (interest earned less interest expended) for the quarter ended December 31, 2024 grew by 7.7% to ₹306.5 billion from ₹284.7 billion for the quarter ended December 31, 2023.
Deposits rose 4.2% to 24.53 trillion rupees, slowing from a 5.1% rise in July-September.
Meanwhile, gross advances, or loans sanctioned and disbursed, rose 0.9% to ₹25.43 trillion, slowing from 1.3% growth in the previous quarter.
The Bank’s net revenue grew by 6.3% to ₹421.1 billion for the quarter ended December 31, 2024 from ₹ 396.1 billion for the quarter ended December 31, 2023.
The Bank’s consolidated net revenue was ₹652.8 billion for the quarter ended December 31, 2024.
Also, the HDFC Bank’s Q3 core net interest margin stands at 3.43% on total assets and at 3.62% on interest earning assets
HDFC Bank’s merger added a large pool of loans to its portfolio but a much smaller amount of deposits, putting it under pressure to increase the pace of raising deposits or slow loan growth.
Over the past few months, it has offered retail loans for sale to reduce its loan-to-deposit ratio, a key metric for banks to assess their liquidity position by gauging whether they have enough deposits to fund loan growth.
HDFC Bank’s provisions for bad loans and other contingencies rose 17% sequentially to ₹31.54 billion.
Its gross non-performing assets ratio was at 1.42% at the end of December, compared to 1.36% in the previous quarter.
Earnings per share for the quarter ended December 31, 2024 was ₹23.1 and book value per share as of December 31, 2024 was ₹656.6.
Total balance sheet size as of December 31, 2024 was ₹ 37,590 billion as against ₹ 34,926 billion as of December 31, 2023.
The Bank’s average deposits were ₹24,528 billion for the December 2024 quarter, a growth of 15.9% over ₹ 21,171 billion for the December 2023 quarter, and 4.2% over ₹23,540 billion for the September 2024 quarter.
The Bank’s average CASA deposits were ₹8,176 billion for the December 2024 quarter, a growth of 6.0% over ₹7,711 billion for the December 2023 quarter, and 1.1% over ₹8,084 billion for the September 2024 quarter.
Total EOP Deposits were at ₹ 25,638 billion as of December 31, 2024, an increase of 15.8% over December 31, 2023. CASA deposits grew by 4.4% with savings account deposits at ₹6,056 billion and current account deposits at ₹2,671 billion. Time deposits were at ₹16,911 billion, an increase of 22.7% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 34.0% of total deposits as of December 31, 2024.
The Bank’s advances under management, on an average basis, were ₹26,276 billion for the December 2024 quarter, a growth of 7.6% over ₹24,414 billion for the December 2023 quarter, and a growth of 2.5% over ₹25,639 billion for the September 2024 quarter.
Gross advances were at ₹25,426 billion as of December 31, 2024, an increase of 3.0% over December 31, 2023. Grossing up for transfers through inter-bank participation certificates, bills rediscounted and securitisation / assignment, advances under management grew by 6.1% over December 31, 2023. Retail loans grew by 10.0%, commercial and rural banking loans grew by 11.6% and corporate and other wholesale loans were lower by 10.4%. Overseas advances constituted 1.8% of total advances.
