HDFC Bank’s Q3 NII hits a 7-year high of 25%; net profit rises 19% to Rs12,260-cr
30 Jan 2023
HDFC Bank, India's largest private sector lender, has reported a25 per cent year-on-year jump in net interest income (NII), or core income, for fiscal third quarter (October-December FY23) at Rs22,987, its best pace in seven years for the December quarter.
The lender had reported net interest income of Rs18,443 crore during the comparable period of the previous fiscal. Net Interest Margin at 4.3 per cent was also the highest in 10 quarters.
HDFC Bank reported a net profit of Rs12,259.5 crore, which is growth of 19 per cent compared to the previous year quarter.
Asset quality for the bank remained stable. Gross Non-performing assets (NPA) for the quarter stood at 1.23 per cent, which was the same in the September quarter, while net NPA also remained flat at 0.33 per cent.
Total provisions stood at Rs2,806 crore and were down 6.2 per cent compared to the previous year quarter and were down 11.4 per cent when compared to the September quarter. Provisions were also the lowest in 13 quarters.
In its quarterly business update released earlier this month, HDFC Bank reported a deposit growth of close to 20 per cent year-on-year and a similar growth in advances. However, loan growth, on a year-on-year basis was the weakest in four quarters and the weakest in six on a sequential basis.
CASA ratio for the bank had declined to an eight-quarter low of 44 per cent, compared to 45.4 per cent in the September quarter.
The bank's cost-to-income ratio was the highest in 15 quarters as the lender continued its branch expansion. The lender added 684 branches sequentially, taking the total branch count to 7,183.