HDFC Bank's Q3 net profit jumps 20% YoY to Rs 5,586 crore; asset quality stable

Published by Kashmir News Trust on January 19, 2019, 4:51 pm

Kashmir News Trust Web Desk


Srinagar: HDFC Bank on Saturday said its third-quarter net profit grew 20.31 per cent year-on-year on the back of higher net interest income and other income.

  The Board of Directors approved the Bank’s (Indian GAAP) results for the quarter ended December 31, 2018, at their meeting held in Mumbai on Saturday, January 19, 2019. The accounts have been subjected to a 'Limited Review' by the statutory auditors of the Bank.

The Bank’s total income for the quarter ended December 31, 2018 at ` 30,811.3 crore grew by 26.0% from ` 24,450.4 crore for the quarter ended December 31, 2017. Net revenues (net interest income plus other income) increased by 23.4% to ` 17,497.8 crore for the quarter ended December 31, 2018 from ` 14,183.5 crore in the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended December 31, 2018 grew by 21.9% to ` 12,576.8 crore, from ` 10,314.3 crore for the quarter ended December 31, 2017, driven by asset growth of 23.7% and a core net interest margin for the quarter of 4.3%.

An analyst poll projected a net profit of Rs 5,603 crore in Q3FY19.

Net interest income (NII) of the lender jumped 21.93 per cent YoY to Rs 12,576.75 crore during the quarter under review.

NII is the difference between interest earned on loans and that paid on deposits.

Asset quality of HDFC Bank remained stable with gross non-performing assets (NPAs), as a percentage of total advances, came at 1.38 per cent in the December quarter, against 1.33 per cent in the September quarter and 1.29 per cent a year ago.

Provisions increased by 63.64 per cent YoY to Rs 2211.53 crore, against Rs 1351.44 crore in the year-ago quarter.

Total balance sheet size as of December 31 stood at Rs 1,168,556 crore as against Rs 9,49,079 crore in the same period last year.

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 17.3% as on December 31, 2018 (15.5% as on December 31, 2017) as against a regulatory requirement of 11.025% which includes Capital Conservation Buffer of 1.875%, and an additional requirement of 0.15% on account of the Bank being identified as a Domestic Systemically Important Bank.