In comparison to the same quarter last year, the net interest income (NII) for the current quarter increased by 23.9% year-on-year, reaching Rs 28,470 crore from Rs 22,990 crore.
January 16, 2023 – HDFC Bank disclosed its fiscal year 2024 third-quarter financial results, concluding on December 31, 2023.
In the third quarter of FY24, the private sector lender recorded a 33% increase in net profit, reaching ₹16,372 crore, compared to ₹12,259 crore from the previous year.
Here are the primary highlights from HDFC Bank’s Q3 financial results.
Loan Expansion
HDFC Bank experienced a significant boost in domestic retail loans, rising by 111%. Commercial and rural loans saw an increase of 31.4%, while corporate and wholesale loans (excluding non-individual loans of approximately ₹98,900 crore from eHDFC) grew by 11.2%.
Deposit Growth
In Q3 of FY24, HDFC Bank witnessed a 27.7% increase in total deposits, reaching ₹28.47 lakh crore compared to ₹22.29 lakh crore a year ago.
Current account and savings account (CASA) deposits demonstrated a 9.5% growth, with savings account deposits registering at ₹5.79 lakh crore and current account deposits at ₹2.58 lakh crore.
Non-Performing Assets (NPAs)
In Q3 of FY24, HDFC Bank recorded gross non-performing assets (NPAs) at 1.26%, a slight increase from 1.23% in the previous fiscal year. Net NPAs for Q3 of FY24 were reported at 0.31%, down from 0.33% last year.
Income
On a standalone basis, the bank witnessed a surge in total income to ₹81,720 crore in the October-December quarter of FY24, up from ₹51,208 crore in the corresponding period of the previous year. Additionally, the consolidated total income for Q3 of FY24 escalated to ₹115,015 crore compared to ₹54,123 crore in the same quarter of the previous fiscal year.
Interest Earnings
In Q3 of FY24, HDFC Bank observed an increase in net interest income (NII) to ₹28,471 crore, compared to ₹27,385 crore in the preceding quarter. The core net interest margin remained consistent sequentially. Additionally, it grew by 3.4% on total assets and 3.6% on interest-earning assets year-on-year.
Earnings Over Nine Months
HDFC Bank’s total income for the nine months concluding on December 31, 2023, reached ₹217,940 crore, a substantial increase from ₹138,950 crore in the same period of the previous year. The net revenue, combining net interest income and other income, for the nine months ending December 31, 2023, amounted to ₹110,530 crore, surpassing the ₹86,000 crore recorded in the corresponding period of the previous year.
Capital Strength
As of December 31, 2023, HDFC Bank’s total capital adequacy ratio (CAR) in accordance with Basel III guidelines stood at 18.4%, a decrease from 19.4% on December 31, 2022. This exceeds the regulatory requirement of 11.7%. The Tier 1 CAR was recorded at 16.8%, while the common equity Tier 1 capital ratio was 16.3% as of December 31, 2023.
Distribution Network and Workforce
As of December 31, 2023, HDFC Bank’s distribution network comprised 8,091 branches and 20,688 ATMs spanning 3,872 cities, an increase from 7,183 branches and 19,007 ATMs across 3,552 cities/towns as of December 31, 2022.
The bank’s workforce numbered 208,066 employees as of December 31, 2023, in contrast to 166,890 on December 31, 2022.
On Tuesday, HDFC Bank shares concluded 0.42% higher at ₹1,678.95 on the BSE.
Source: Google Finance , Mint
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