More Stories

Informist, Wednesday, Jan. 22, 2025

 

--HDFC Bk: Hold provision of INR 3.45 bln on AIF investment as on Dec 31

--HDFC Bk: Wrote off loans worth INR 31 bln Oct-Dec vs INR 29 bln Jul-Sept 
--HDFC Bk Oct-Dec recoveries, upgrades INR 40 bln vs INR 36 bln Jul-Sept 
--HDFC Bk Oct-Dec slippages INR 88 bln vs INR 78 bln in Jul-Sept 
--HDFC Bank: Retail gross NPA at 0.8% as on Dec 31, unchanged vs qtr ago 
--HDFC Bank Oct-Dec cost of funds at 4.9%, unchanged vs qtr ago 
--HDFC Bank: Liquidity coverage ratio at 125% as on Dec 31 
--HDFC Bank: Retail loans at INR 13.43 tln as on Dec 31, up 10% YoY

--HDFC Bank Oct-Dec cost-to-income ratio at 40.6% 
--HDFC Bank Oct-Dec core NIM on total assets at 3.43% vs 3.46% qtr ago 
--HDFC Bank Oct-Dec net interest income INR 306.5 bln, up 7.7% on year 
--HDFC Bank Apr-Dec total income INR 2.567 tln vs INR 2.179 tln year ago 
--HDFC Bank Apr-Dec net profit INR 497.31 bln vs INR 443.00 bln year ago 
--HDFC Bank capital adequacy ratio 19.97% as on Dec 31 
--HDFC Bank Oct-Dec provisions INR 31.54 bln vs INR 42.17 bln year ago 
--HDFC Bank net NPA ratio 0.46% as on Dec 31 vs 0.41% quarter ago 
--HDFC Bank gross NPA ratio 1.42% as on Dec 31 vs 1.36% quarter ago 
--HDFC Bank Oct-Dec total income INR 874.60 bln vs INR 817.20 bln year ago 
--HDFC Bank Oct-Dec net profit INR 167.36 bln vs INR 163.73 bln 
--Analysts saw HDFC Bank Oct-Dec net profit INR 166.47 bln 
--HDFC Bank Oct-Dec net profit INR 167.36 bln .
 

By Sagar Sen

 

NEW DELHI – HDFC Bank Ltd.'s net profit for Oct-Dec rose just 2.2% on year to INR 167.36 billion, the lowest growth in at least 36 quarters. The net profit was broadly in line with the analysts' estimates. As per the estimates by 16 brokerage houses, the bottom line was expected at INR 166.47 billion. Sequentially, the bank's net profit was down 0.51%.

 

The country's largest private sector bank was expected to report a muted growth in the bottom line on the back of tepid loan growth and rising provisions. The bank's gross advances rose around 3% to INR 25.43 trillion as of Dec. 31, while deposits were INR 25.64 trillion as of Dec. 31, up 15.8% on year from INR 22.14 trillion last year.

 

The interest earned by the bank grew 7.68% on year to INR 760.07 billion, and interest expended rose 7.7% to INR 453.54 billion in the reporting quarter. The net interest income of the bank increased 7.7% on year to INR 306.53 billion for Oct-Dec.

 

The non-performing asset ratios of the bank deteriorated as of Dec. 31. The gross non-performing asset ratio increased to 1.42% on Dec. 31 as compared to 1.36% a quarter ago and 1.26% a year ago. The net NPA ratio also increased to 0.46% as on Dec. 31 compared to 0.41% a quarter ago and 0.31% a year ago.

 

The bank's core net interest margin was largely unchanged from the previous quarter, and came in at 3.43% on total assets and 3.62% on interest-earning assets. In the previous quarter, the bank's core net interest margin on total assets was 3.46%, and the net interest margin based on interest-earning assets was 3.65%. The total income rose 7.0% on year to INR 874.60 billion for the quarter ended December.

 

Within gross advances, retail advances were up 10.0% at INR 13.43 trillion, commercial and rural banking loans were up 11.6% to INR 8.61 trillion and the corporate and other wholesale loans were down 10.4% on year at INR 4.81 trillion, the bank said. It said the overseas advances constituted 1.8% of total advances. The retail-to-wholesale mix in the total advances was 58:42 as on Dec. 31 compared to 54:46 reported a year ago.

 

In terms of deposits, the current and savings account deposits were up 4.4% on year, according to a press release issued by the bank. Savings account deposits were at INR 6.06 trillion as on Dec. 31 and current account deposits at INR 2.67 trillion. The CASA ratio was at 34% as on Dec. 31. Time deposits were up 22.7% on year at INR 16.91 trillion as on Dec. 31.

 

The capital adequacy ratio of the bank was 19.97% as on Dec. 31, higher as compared to 18.39% a year ago, and 19.77% as on Sept. 30. This is comfortably higher than the regulatory requirement of 11.7%. The liquidity coverage ratio stood at 125% as on Dec. 31, which is slightly lower than 128% as on Sept. 30. The bank had a total 9,143 branches as on Dec. 31. It added 51 branches Oct-Dec, and 1,052 branches in the last 12 months.

 

The bank reported cost-to-income of 40.6% for Oct-Dec. Total provisions made by the bank during the reporting quarter fell by 25.2% on year. However, sequentially they increased 16.8% to INR 31.54 billion. The cost of funds for the bank remained unchanged at 4.9% for the fifth quarter in a row.

 

The retail gross NPAs remained unchanged over the previous quarter at 0.8% as on Dec 31. During Oct-Dec, the bank's fresh slippages were to the tune of INR 88 billion as compared to INR 78 billion in the previous quarter. Recoveries and upgrades in Oct-Dec were INR 40 billion against INR 36 billion last quarter. The bank wrote off loans worth INR 31 billion in Oct-Dec as compared with INR 29 billion in Jul-Sept.

 

The bank also reassessed provisions towards investments in Alternate Investment Fund. "Accordingly, during the quarter ended Sept. 30, the bank reversed provision of INR 6.80 billion in respect of the investments in Alternate Investment Funds and the provision held as at Sept. 30, was INR 3.55 billion. As at Dec. 31, provision held thereon is INR 3.45 billion," the bank said in an exchange filing.

 

During Apr-Dec, the bank's net profit increased by 12.3% over last year to INR 497.31 billion. The total income of the bank increased 17.8% during the period to INR 2.57 trillion.

 

Wednesday, benchmark equity indices bounced back and their recovery was boosted by HDFC Bank's earnings. "The sharp bounce-back was on the back of gains in HDFC Bank which declared its results a while ago," Kshitija Salvi, technical research analyst at IDBI Capital & Securities, said. The stock has a weightage of 12.7% on the index, which is the highest of all the Nifty 50 constituents. Shares of the bank turned positive after the earnings with the stock ending at INR 1,666.05, up 1.4% on the National Stock Exchange.  End

 

Edited by Vandana Hingorani

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.