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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