HDFC Bank Q3 Results: Net profit grows 33.5% to Rs 16,372.5 crore, beats Street estimates; asset quality improves

HDFC Bank—the country's largest private sector lender—on Tuesday reported a standalone net profit of Rs 16,372.5 crore for the October-December period (Q3 FY24), in line with Street estimates.

The quarterly net profit increased 33.5 per cent on a year-on-year basis, according to a regulatory filing. 

According to Zee Business research, the lender was estimated to report a net profit of Rs 16,000 crore for the fiscal third quarter. 

HDFC Bank said its net interest income (NII)—or the difference between interest earned and interest paid—grew 23.9 per cent to Rs 28,470 crore for the three-month period. 

The lender's core net interest margin (NIM)—a key measure of profitability for financiers—stood at 3.4 per cent based on total assets and 3.6 per cent based on interest-earning assets, it added.

Zee Business analysts had estimated the bank's quarterly NII at Rs 28,700 crore and core NIM in the range of 3.3-3.4 per cent. 

HDFC Bank said its pre-provision operating profit (PPoP) increased 24.3 per cent to Rs 23,650 crore compared with the year-ago period. 

Provisions and contingencies for the quarter amounted to Rs 4,220 crore, as against Rs 2,810 crore for the year-ago period, according to HDFC Bank.

HDFC Bank said its total deposits stood at Rs 22,14,000 crore and gross advances at Rs 24,69,300 crore, as of December 31, 2023, up 27.7 per cent and 62.4 per cent on a year-on-year basis, respectively.

Better asset quality 

The bank staged an improvement in its asset quality, gauged by non-performing assets (NPAs) as a percentage of total loans. 

Its gross NPAs came down to 1.26 per cent and net NPAs to 0.31 per cent, as of December 31, from 1.34 per cent and 0.35 per cent three months ago, according to the filing.

HDFC Bank shares finished 0.4 per cent stronger at Rs 1,679 apiece on BSE ahead of the earnings announcement. 

Earlier on Tuesday, Zee Business Managing Editor Anil Singhvi said HDFC Bank results will determine whether the Nifty Bank is ready for a fresh lifetime high. 

As of Tuesday, the banking index is more than 500 points below an all-time high of 48,636.5 scaled on December 28, 2023. 

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