HDFC Bank results first Cut: Profitability higher than Edelweiss estimate; reported one of the lowest ever GNPA

Edelweiss says while Net Revenue stood at Rs 238bn (+14% YoY), in-line with their estimate of Rs 234 bn, PPoP stood at Rs 152 bn (+ 17% YoY), in-line with Edelweiss estimate of Rs 150 bn. PAT came at Rs 87.6 bn (+ 18% YoY), higher than their estimate of Rs 80 bn, mainly because of credit cost which came in at 1.3% against Edelweiss estimate of 1.6%. GNPA at 0.81% is one the lowest ever GNPA reported by the bank.

However, if Edelweiss excludes RBI relaxation on asset reclassification, GNPA would have been 1.38% (similar figure for Sept 2020 was 1.37%, so no major movement on QoQ basis). The net NPA ratio improved to 0.09%, down 8 basis points on a sequential basis. All in all a good result from the largest private bank highlights the fundamentals of the Indian Economy.

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Advances And Deposits Advances details:

During the quarter rose 15.6% yoy to Rs 10.82 lk cr. The growth on a sequential basis stood at 4%. Domestic retail loans grew 5.2% while domestic wholesale loans grew 25%. Deposits for the same period rose 19% from last year to Rs 12.7 lk cr. Deposits rose 3% as compared to the July-September period. The CASA ratio, which is the share of low cost c

HDB Financial Asset Quality Deteriorates:

The pro forma gross NPA ratio for HDB Financial rose to 5.9% in Q3 FY21 vs 5.1% in Q2 FY21 and 2.9% as of Dec 2019 quarter. Provisions and contingencies stood at Rs 819 cr. The NBFC continued to go slow on expanding its balance sheet. The total loan book was Rs 57710 cr as on Dec 31, 2020 as against Rs 56748 cr as of Dec 31, 2019