HDFC Bank Q3 Results: Profit, NII see double-digit growth, exceed analysts' expectations

HDFC Bank -- India’s largest lender by market value -- reported a strong set of results for the October-December period. Its net profit stood at Rs 12,259.5 crore, up 18.5 per cent on a year-on-year basis, and net interest income (NII) -- or the difference between interest earned and interest paid -- grew 24.6 per cent to Rs 22,987.8 crore, according to a regulatory filing. Both topline and bottomline exceeded analysts' estimates.

According to Zee Business research, HDFC Bank's quarterly net profit was estimated at Rs 11,900 crore and revenue at Rs 22,500 crore.

HDFC Bank's core net interest margin -- a key measure of profitability for lenders -- was at 4.1 per cent on total assets, and 4.3 per cent based on interest earning assets, according to the filing.

The lender's asset quality remained steady, as gross bad loans as a percentage of total advances remained unchanged at 1.23 per cent compared with the July-September period -- also in line with analysts' estimates. 

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Net non-performing assets -- or bad loans -- also remained unchanged on a quarter-on-quarter basis, at 0.33 per cent.

HDFC Bank reported provisions and contingencies of Rs 2,806.4 crore for the quarter ended December 2022, as against Rs 2,994 crore for the year-ago period.

The lender's total deposits increased 19.9 per cent on a year-on-year basis to Rs 17,33,204 crore, as of December 31, 2022.

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It posted 12 per cent growth in CASA (current account and savings account) deposits, with savings account deposits at Rs 5,35,206 crore and current account deposits at Rs 2,27,745 crore.

Its total balance sheet expanded 18.4 per cent on year to Rs 22,95,305 crore, as of December 31, 2022.

HDFC Bank shares ended higher by Re 1.2 or 0.1 per cent at Rs 1,600.9 apiece on BSE, as against a 0.5 per cent rise in the benchmark Sensex index. 

The stock rewarded investors with a return of 14.4 per cent in the quarter ended December 2022, a period in which the 30-scrip gauge rose 5.9 per cent.

 - This story has been updated with more details