HDFC Bank on Saturday reported an 18% year-on-year (y-o-y) growth in net profit for the quarter ended December to Rs 10,342 crore on the back of a 13% y-o-y rise in net interest income (NII) to Rs 18,443.5 crore, with non-interest income growing 10% y-o-y. 

The core net interest margin (NIM) in Q3 remained unchanged from the previous quarter at 4.1%. Total advances as on December 31, 2021, stood at Rs 12.61 lakh crore, up 16.5% over December 31, 2020. Retail loans grew by 13.3%, commercial and rural banking loans grew by 29.4% and corporate and other wholesale loans grew by 7.5%. Overseas advances constituted 3.4% of total advances. 

Total deposits as on December 31 were Rs 14.46 lakh crore, an increase of 13.8% over December 31, 2020. Current account savings account (CASA) deposits grew 24.6% y-o-y, with SA deposits at Rs 4.71 lakh crore and CA deposits at Rs 2.1 lakh crore. Time deposits stood at Rs 7.65 lakh crore, an increase of 5.6% over the previous year. The CASA ratio stood at 47.1%, up from 43% for the corresponding quarter a year ago. 

HDFC Bank’s provisions fell 12.3% y-o-y to Rs 2,994 crore. In a statement, the bank said total provisions for the current quarter includes specific loan loss provisions of Rs 1,820.6 crore and general and other provisions of Rs 1,173.4 crore. They also include contingent provisions of approximately Rs 900 crore. The gross non-performing asset (NPA) ratio fell nine basis points (bps) sequentially to 1.26% as on December 31, 2021, while the net NPA ratio fell three bps to 0.37%.

The bank’s total capital adequacy ratio (CAR) as per Basel III guidelines was at 19.5% as on December 31, 2021 (18.9% as on December 31, 2020) as against a regulatory requirement of 11.7% which includes capital conservation buffer of 2.5%, and an additional requirement of 0.20% on account of the bank being identified as a domestic systemically important bank (D-SIB). 

Tier 1 CAR was at 18.4% as of December 31, 2021 compared to 17.6% as of December 31, 2020. Common equity tier 1 capital ratio was at 17.1% as of December 31, 2021. Risk weighted assets were at Rs 12.67 lakh crore, as against Rs 10.92 lakh crore as at December 31, 2020.

The bank’s NBFC subsidiary HDB Financial Services posted a net profit of Rs 304 crore in Q3FY22, as against a net loss of Rs 146 crore in Q3FY21.  The total loan book grew by 0.68% y-o-y to Rs 60,478 crore as on December 31, 2021 as against Rs 60,068 crore as of December 31, 2020. Stage 3 loans, denoting the ratio of bad assets, were at 6.05% of gross loans, down from 6.1% in the September quarter.