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Informist, Saturday, Oct. 19, 2024

 

By Kshipra Petkar

 

MUMBAI – HDFC Bank's net profit rose 5.3% on year to INR 168.21 billion, the lowest growth in 17 quarters, for Jul-Sept. However, the net profit was in line with the analysts' expectations. As per the estimates by 15 brokerages, the bottom line was expected in the range of INR 158.50 billion-INR 177.84 billion. Sequentially, the net profit was up 4%.

 

The largest private sector bank was expected to report a muted growth in the bottom line as it was looking to bring down its loan-to-deposit ratio. The bank's gross advances rose 7% on year to INR 25.19 trillion as on Sept. 30, while deposits were up 15.1% on year at INR 25.00 trillion.

 

During the quarter ended Sept. 30, the bank securitised INR 192 billion loans as a strategic initiative.

 

With these numbers, the loan-to-deposit ratio stands at 100.8%, much lower than the 108.4% reported a year ago and 104.53% a quarter ago. While announcing the numbers for Apr-Jun, the bank's management had said it aimed to bring down this ratio to the pre-merger levels of 80-85%.

 

The bank's interest earned grew only 9.3% on year to INR 740.47 billion, and interest expended rose 8.9% to INR 439.03 billion in Jul-Sept.

 

The net interest income of the bank increased 10% on year to INR 301.1 billion in Jul-Sept. The bank's core net interest margin was largely unchanged from the previous quarter, and stood at 3.46% on total assets and 3.65% on interest-earning assets. In the previous quarter, the bank's core net interest margin on total assets was 3.47%, and the net interest margin based on interest-earning assets was 3.66%. The total income rose 9.05% on year to 854.9 billion in the quarter ended September. 

 

The non-performing asset ratios of the bank increased as of Sept. 30. The gross non-performing asset ratio of the bank increased to 1.36% on Sept. 30 as compared to 1.33% reported a quarter ago and the net NPA ratio was reported at 0.41% as on Sept. 30 compared to 0.39% a quarter ago. The provisions fell by 7% on year to INR 27.04 billion.

 

Within gross advances, retail advances were up 11.3% at INR 13.16 trillion, commercial and rural banking loans were up 17.4% to INR 8.51 trillion and the corporate and other wholesale loans were lower by 12% on year to 4.67 trillion, the bank said in its press release. It said that the overseas advances constituted 1.7% of total advances. The retail-to-wholesale mix in the total advances stood at 55:45 as on Sept. 30 compared to 57:43 reported a year ago.

 

Within deposits, the current and savings account deposits were up 8.1% on year. Savings account deposits were at INR 6.08 trillion as on Sept. 30 and current account deposits stood at INR 2.75 trillion. The current, savings account ratio was at 35.3% as on Sept. 30. Time deposits were up 19.3% on year at INR 16.17 trillion as on Sept. 30.

 

The capital adequacy ratio of the bank stood at 19.8% as on Sept. 30, higher as compared to 19.5% as reported a year ago. This is fairly higher than the regulatory requirement of 11.7%. The liquidity coverage ratio stood at 128% as on Sept. 30. The bank's total number of branches as on Sept. 30 stood at 9,092. It added 241 branches Jul-Sept, and 1,147 branches in the last 12 months. On the National Stock Exchange, the shares of HDFC Bank closed 0.5% higher at INR 1,681.85 on Friday.  End

 

Edited by Akul Nishant Akhoury and Vandana Hingorani 

 

 

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