HDFC Bank Q3 profit zooms 33.5% to ₹16,370 cr

India's largest private lender HDFC Bank Ltd today reported a 33.5% year-on-year rise in the net profit to ₹16,370 crore in the October-December quarter of FY2023-24 as compared to ₹12,259 crore in the year-ago period.

HDFC Bank's net interest income for the quarter grew 23.9% to ₹28,470 crore from ₹22,990 crore in the year-ago period.

The bank's net revenue surged 25.8% to ₹39,610 crore for the quarter ended December 31, 2023, from ₹31,490 crore in the year-ago period.

The core net interest margin for the said quarter stood at 3.4% on total assets and 3.6% based on interest-earning assets.

The bank earned ₹11,140 crore as "other income" during the quarter against ₹8,500 during the year-ago period.

HDFC Bank's operating expenses for the quarter were recorded at ₹15,960 crore, an increase of 28.1% over ₹12,460 crore during the corresponding quarter of the previous year. The bank's cost-to-income ratio stood at 40.3% during Q3 FY24.

Provisions and contingencies for the quarter were at ₹4,220 crore against ₹2,810 crore in the year-ago period. "Total provisions for the current quarter included contingent provisions of ₹1,220 crore," the bank says.

The bank's total balance sheet as of December 31, 2023, stood at ₹34,92,600 crore against ₹22,95,300 crore as of December 31, 2022.

The bank's total deposits were at ₹22,14,000 crore, up 27.7% YoY as compared to December 31, 2022. The CASA (current account and savings account) deposits grew 9.5%, with savings account deposits at ₹5,79,900 crore and current account deposits at ₹2,55,800 crore.

The bank's gross advances were at ₹24,69,300 crore as of December 31, 2023, an increase of 62.4% over December 31, 2022.

In terms of consolidated financial results, HDFC Bank's net profit surged 35.9% on a year-on-year basis to ₹17,260 crore, while its net revenue zoomed 113.5% to ₹71,770 crore from ₹33,620 crore in the year-ago period. The earnings per share for the said quarter stood at ₹22.7 and the book value per share was recorded at ₹576 as of December 31, 2023.

HDFC bank share, meanwhile, closed 0.42% or 7.10 points up at ₹1,678.95 on the BSE. The stock rose to ₹1,683.90 during the intra-day trade, up 0.7% compared to the previous session close. At the current share price, the m-cap of the private sector bank stands at ₹12.7 lakh crore.

Researchers at Motilal Oswal in a report last month said execution at the bank is on track, and that the lender is marching toward "steady growth and profitability". "We estimate HDFCB to sustain a ~17% CAGR in loans over FY24-26...a ~20% CAGR in the bank’s deposit base over FY24-26..HDFCB to sustain a ~17% CAGR in loans over FY24-26," the note said.