HDFC Bank on Saturday reported a 22.3% jump in consolidated net profit for the September quarter to ₹11,125.21 crore, helped by a reduction in money set aside for bad loans.
On a standalone basis, the largest private-sector lender’s net profit rose by more than 20.1% to ₹10,605.78 crore as against ₹8,834.31 crore in the year-earlier period and ₹9,196 crore in the preceding June quarter.
The core net interest income climbed 18.9% to ₹21,021 crore on the back of a more than 23% jump in advances, while the net interest margin was stable at 4.1%.
Other income showed a marginal 2.63% growth to ₹7,596 crore on account of a loss of ₹253.1 crore on sale or revaluation of investments as against a gain of ₹675 crore in the year-earlier period.
The bank said the other income growth, excluding the mark-to-market losses incurred amid the rising rates scenario, stood at 16.7%.
Amid the ‘war for deposits’, where some banks have reported a wide gap between advances and deposit growth, the lender reported a 21% increase in the deposits. Share of the low-cost current and saving account deposits stood at 45.1% as on September 30.
The overall share of gross non-performing assets improved to 1.23% of the book as against 1.35% in the year-earlier period and 1.28% three months ago.
The amount set aside as provisions and contingencies reduced sharply to ₹3,240 crore, as against ₹3,925 crore, thus aiding the bottomline growth, HDFC Bank said. Over ₹3,000 crore of the amount set aside during the reporting quarter was for specific loan loss provisions.
On the restructuring front, the bank said it is carrying ₹7,851 crore of advances as standard restructured category, which includes ₹5,256 crore of personal loans. It said ₹3,343 crore of loans slipped during the April-September period (first half of the fiscal), ₹1,765 crore was written off and ₹2,196 crore was paid by borrowers.
The 23.4% loan growth was driven by corporate and wholesale advances growth at 27%, while retail advances grew 21.4% and the commercial and rural banking segment reported a 31.3% increase.
The number of branches increased to 6,499, while the total number of employees rose to 1.61 lakh from 1.29 lakh in the year-earlier period.
Its overall capital adequacy ratio stood at 18% as of September 30, which includes the core tier-I adequacy at 17.1%.
The bank, which is absorbing its parent HDFC Ltd. into itself in corporate India’s biggest merger in history, also informed that the National Company Law Tribunal (NCLT) directed it on Friday to hold a meeting of shareholders on November 25 to seek their approval for the merger scheme.
Among the subsidiaries, HDFC Securities saw a dip in its September quarter net at ₹190.9 crore as against ₹239.6 crore in the year-ago period, while HDB Financial Services’ profit after tax zoomed to ₹471.4 crore from ₹191.7 crore.