HDFC Bank has just released its Q3 results, and the numbers are looking impressive. The HDFC Q3 result saw a substantial 33.54% year-on-year increase, reaching Rs 16,372.54 crore, compared to Rs 12,259.49 crore in the same quarter last year. This figure aligns closely with expectations from industry experts.
One of the key indicators of the bank’s performance, the Net Interest Income (NII), also showed significant growth, rising by 23.9% YoY to Rs 28,470 crore. While slightly below the estimated 25%, it still demonstrates a robust financial performance.
The pre-provision operating profit witnessed a substantial jump of 24.3%, reaching around Rs 23,650 crore. However, provisions for the quarter rose to about Rs 4,220 crore from Rs 2,810 crore in the same period last year.
HDFC Bank reported that its core net interest margin (NIM) stood at 3.4% on total assets and 3.6% based on interest-earning assets. Gross non-performing assets were at 1.26% of gross advances as of December 31, 2023, a slight improvement from the previous quarter.
Non-interest revenue for the quarter ending December 31, 2023, was around Rs 11,140 crore, showcasing a significant increase compared to Rs 8,500 crore in the same quarter of the previous year.
Operating expenses were up by 28.1% at Rs 15,960 crore, resulting in a cost-to-income ratio for the quarter at 40.3%. The bank’s total Capital Adequacy Ratio (CAR) as per Basel II guidelines stood at a healthy 18.4%.
HDFC Bank’s distribution network expanded to 8,091 branches and 20,688 ATMs across various cities and towns. It’s worth noting that 52% of its branches are in semi-urban and rural areas.
In terms of loans, domestic retail loans saw an impressive growth of 111.1%, while commercial and rural banking loans grew by 31.4%. Corporate and other wholesale loans, excluding non-individual loans of eHDFC Ltd, increased by 11.2%. Overseas advances constituted 1.7% of total advances.
The overall results showcase HDFC Bank’s resilience and continued growth in the market, solidifying its position as a leading player in the banking sector.