HDFC Bank profit jump: HDFC Bank on Saturday reported a 22.30 per cent jump in its consolidated net profit at Rs 11,125.21 crore for the September quarter, helped by a reduction in funds set aside for bad loans.
On a standalone basis, the largest private sector lender’s net profit rose 20.1 per cent to Rs 10,605.78 crore from Rs 8,834.31 crore in the year-ago period and Rs 9,196 crore in the preceding June quarter.
Core net interest income rose 18.9 per cent to Rs 21,021 crore, led by a jump of over 23 per cent in advances, while net interest margin remained stable at 4.1 per cent. Other income grew marginally by 2.63 per cent to Rs 7,596 crore on account of loss of Rs 253.1 crore on sale or revaluation of investments as against profit of Rs 675 crore in the year-ago period.
The bank said earnings growth excluding mark-to-market losses stood at 16.7 per cent amid rising rates scenario. Amid the ‘war for deposits’, where some banks have reported a wide gap between advances and deposit growth, the lender has registered a 21 per cent growth in deposits. The share of low-cost current and savings account deposits stood at 45.1 per cent as of September 30, 2022.
The total share of gross non-performing assets rose to 1.23 per cent, as against 1.35 per cent in the year-ago period and 1.28 per cent three months ago. HDFC Bank said the amount set aside as provisions and contingencies declined sharply to Rs 3,240 crore as against Rs 3,925 crore, which helped support bottomline growth. Over Rs 3,000 crore set aside during the quarter under review was for specific loan loss provisions.
On the restructuring front, the bank said it is taking advances of Rs 7,851 crore as standard restructured category, which includes Rs 5,256 crore personal loans. It said that during the April-September period (first half of the financial year) loans of Rs 3,343 crore were slipped, Rs 1,765 crore were written off and Rs 2,196 crore were paid off by borrowers.
The 23.4 per cent credit growth was driven by 27 per cent growth in corporate and wholesale advances, while retail advances grew by 21.4 per cent and the commercial and rural banking segment registered a growth of 31.3 per cent.
The number of branches increased to 6,499, while the total number of employees increased to 1.61 lakh from 1.29 lakh in the year-ago period. Its overall capital adequacy ratio was 18 per cent as on September 30, 2022, which includes core Tier-I adequacy of 17.1 per cent.
The bank, which is amalgamating its parent HDFC Ltd in the biggest merger in the history of corporate India, also informed that the National Company Law Tribunal (NCLT) on Friday called for their shareholders’ meeting to be held on November 25. directed to obtain approval. merger plan.
Among subsidiaries, HDFC Securities saw its net profit decline by Rs 190.9 crore in the September quarter as against Rs 239.6 crore in the year-ago period, while profit after tax of HDB Financial Services increased from Rs 191.7 crore to Rs 471.4 crore. Rs. On Friday, the bank’s stock closed at Rs 1,441.10, up 3.40 per cent on the BSE.
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