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Home >Industry >Banking >HDFC Bank Q3 results: Net profit jumps to 8,758 crore; NII rises 15%

HDFC Bank on Saturday reported a 18.1% year-on-year increase in net profit of 8,758.3 crore for the quarter ended in December 2020. The profit in the year ago period was at 7,416.48 crore. The private lender's net interest income, the difference between interest earned and interest expended, grew 15.1% year-on-year to 16,317.6 crore during the quarter under review. NII was 14,172.9 crore in the corresponding period. NII was driven by advances growth of 15.6% and a core net interest margin for the quarter of 4.2%, the bank said.

Banks net revenue jumped to 23,760.8 core for the quarter ended 31 December. Other income stood at 7,443.2 crore during Q3. The four components of other income for the quarter ended December 31, 2020 were — fees and commissions of 4,974.9 crore, foreign exchange and derivatives revenue of 562.2 crore, gain on sale or revaluation of investments of 1,109 crore and miscellaneous income of 797.1 crore.

Pre-provision operating profit rose 17.3% year-on-year to 15,186.02 crore for the quarter ended December 2020. The private sector lender informed the exchanges that its loan book increased by 16% YoY to 10.82 lakh crore and deposits by 19% YoY to 12.71 lakh crore at the end of December quarter.

The bank made provisions and contingencies amounting to 3,414.1 crore consisting of specific loan provisions of 2,883.6 crore and general and other provisions of 159.9 crore, for the December quarter. "Total provisions for the current quarter includes contingent provisions of approximately 2,400 crore for proforma NPA as described in the asset quality section," the bank said.

Asset quality of the bank has seen improvement in the December quarter. The gross non-performing assets (NPA) as a as a percentage of gross advances, declined 27 bps sequentially 0.81% in Q3FY21, while net NPA fell to 0.09% in the quarter under review, compared to 0.17% in September quarter 2020.

The lender's persistent focus on deposits helped them to maintain a health liquidity coverage ration at 146%, HDFC Bank said in the regulatory filing.

The bank’s total advances were at 10.82 lakh crore in Q3 of FY21, an increase of 15.6% over the same period last year. The domestic retail loans grew 5.2% and domestic wholesale loans grew 25.5%, it said.

Bank's total balance sheet size grew 18.6% (YoY) to 1,654,338 crore in the December quarter. Total deposits reported a increase of 19.1% (YoY) to 1,271,124 crore crore. Its CASA ratio stood at around 43% compared to 39.5% at the end of December 2019 and 41.6% as on September 2020.

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