HDFC Bank Q3 Financial Results: Top things to know - All details here

Private lender HDFC Bank on Saturday reported a rise of 32.8 per cent in standalone net profit for the quarter ended December 31st, 2019, on a year-on-year basis. According to the lending major, net interest income for the quarter under review grew to Rs 14,172.9 crore from Rs 12,576.8 crore earned during the corresponding period of the previous fiscal. 

"The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarter and nine months ended December 31, 2019, at their meeting held in Mumbai on Saturday, January 18, 2020. The accounts have been subjected to a 'Limited Review' by the statutory auditors of the Bank," the lending major said in a statement.

Here are top things to know about HDFC BANK's FINANCIAL RESULTS (INDIAN GAAP) FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2019:-

STANDALONE FINANCIAL RESULTS:

Profit & Loss Account: Quarter ended December 31, 2019

The Bank’s net revenues (net interest income plus other income) increased by 19.1% to Rs 20,842.2 crore for the quarter ended December 31, 2019 over the corresponding quarter of the previous year.

Balance Sheet: As of December 31, 2019

Total balance sheet size as of December 31, 2019 was Rs 1,395,336 crore as against Rs 1,168,556 crore as of December 31, 2018, a growth of 19.4%

Nine Months ended December 31, 2019

For the nine months ended December 31, 2019, the Bank’s net revenues (net interest income plus other income) were Rs 58,210.4 crore, as against Rs 47,908.4 crore for the nine months ended December 31, 2018, a growth of 21.5%. Net profit for the nine months ended December 31, 2019 was Rs 19,329.6 crore, up by 27.2% over the corresponding nine months ended December 31, 2018

Capital Adequacy:
 
The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 18.5% as on December 31, 2019 (17.3% as on December 31, 2018) as against a regulatory requirement of 11.075% which includes Capital Conservation Buffer of 1.875%, and an additional requirement of 0.20% on account of the Bank being identified as a Domestic Systemically Important Bank (D-SIB). Tier 1 CAR was at
17.1% as of December 31, 2019 compared to 15.8% as of December 31, 2018. Common Equity Tier 1 Capital ratio was at 16.2% as of December 31, 2019. Riskweighted Assets were at ` 950,976 crore (as against ` 908,245 crore as at December 31, 2018).

NETWORK

As of December 31, 2019, the Bank’s distribution network was at 5,345 banking outlets and 14,533 ATMs / Cash Deposit & Withdrawal Machines (CDMs) across 2,787 cities / towns as against 4,963 banking outlets and 13,407 ATMs / CDMs across 2,727 cities / towns as of December 31, 2018. Of the total banking outlets, 52% are in semi-urban and rural areas. In addition, we have 3,421 banking outlets managed by the Common Service Centres. Number of employees were at 113,981 as of December 31, 2019 (as against 96,425 as of December 31, 2018).

ASSET QUALITY
Gross non-performing assets were at 1.42% of gross advances as on December 31, 2019, (1.2% excluding NPAs in the agricultural segment) as against 1.38% as on September 30, 2019 (1.2% excluding NPAs in the agricultural segment) and 1.38% as on December 31, 2018 (1.1% excluding NPAs in the agricultural segment). Net nonperforming assets were at 0.48% of net advances as on December 31, 2019. The Bank held floating provisions of ` 1,451 crore and contingent provisions of ₹ 1,457 crore as on December 31, 2019. Total provisions (comprising specific, floating, contingent and general provisions) were 119% of the gross non-performing loans as on December 31,
2019

SUBSIDIARIES

The financial results of the Bank’s subsidiary companies have been prepared in accordance with notified Indian Accounting Standards ('Ind-AS').

HDFC Securities Limited (HSL) is amongst the leading retail broking firms in India. As on December 31, 2019, the Bank held 97.3% stake in HSL.

HDB Financial Services Limited (HDBFSL) is a non-deposit taking non-banking finance company (‘NBFC’) offering wide range of loans and asset finance products to individuals, emerging businesses and micro enterprises. As on December 31, 2019, the Bank held 95.3% stake in HDBFSL.

CONSOLIDATED FINANCIAL RESULTS

The Bank’s consolidated financial results include the financial results of its subsidiary companies based on the recognition and measurement principles as per Indian GAAP.

The consolidated net profit for the quarter ended December 31, 2019 was Rs 7,660 crore, up 29.8%, over the quarter ended December 31, 2018. Consolidated advances grew by 19.2% from Rs 827,853 crore as on December 31, 2018 to Rs 986,606 crore as on December 31, 2019.

The consolidated net profit for the nine months ended December 31, 2019 was Rs 19,974 crore, up 24.6%, over the nine months ended December 31, 2018.