HDFC Bank has reported an 18.1% year-on-year jump in its standalone net profit to Rs 10,342.20 crore for the fiscal third-quarter ended December. This rise is due to improved loan growth and asset quality. 

Total income of the country’s largest private bank grew to Rs 40,651.60 in the October-December quarter, from Rs 37,522.92 crore a year ago.

Net interest income grew 13% to Rs 18,443.5 crore from Rs 16,317.6 crore a year back. 

Other income or non-interest revenue stood at Rs 8,183.6 crore, comprising 30.7% of net revenues for the quarter ended December 31. It grew nearly 10% from Rs 7,443.2 crore over the same period a year ago.

HDFC Bank’s advances grew at 16.5% year-on-year while the core net interest margin was at 4.1%, the bank said in a press release.

Liquidity coverage ratio was at 123% in the December quarter, well above regulatory requirements, positioning the bank favourably to capitalise on growth opportunities, the private lender said.

The bank’s asset quality showed an improvement. As on December 31, 2021, HDFC Bank’s gross non-performing asset (NPA) ratio was at 1.26%, down from 1.35% a quarter ago and 1.38% a year ago.

The net NPA ratio was at 0.37 per cent as on December 31, 2021.

HDFC Bank’s total provisions (consisting of specific, floating, contingent and general provisions) were at 172% of gross NPAs as on December 31, 2021.

Deposits

Total deposits as on December 31, 2021, were at Rs 14,45,918 crore, up 13.8% year-on-year.

Current account savings account (CASA) deposits grew 24.6%, with savings accounts deposits at Rs 4,71,029 crore and current account deposits at Rs 2,10,195 crore.

Time deposits were at Rs 7,64,693 crore, up 5.6% year-on-year.

CASA deposits comprised 47.1% of total deposits as on December 31.

Advances

HDFC Bank’s total advances grew 16.5% year-on-year to Rs 12,60,863 crore.

Retail advances grew 13.3%, commercial and rural banking loans by 29.4%, while corporate and other wholesale loans grew 7.5%. Overseas advances contributed to 3.5% of total advances, HDFC Bank said.

Total credit cost ratio declined to 0.94% in the December quarter from 1.30% a quarter ago and 1.25% a year ago.