HDFC Bank Posts Impressive Q3 Results, Profit Jumps 34%

HDFC Bank, one of India’s leading private sector lenders, has reported its financial results for the third quarter ended December 31, 2023. The bank showcased strong performance, with a 34% surge in net profit to Rs 16,372 crore compared to the same period last year, meeting Street expectations.

Net interest income (NII) for the quarter stood at Rs 28,470 crore, reflecting a 23.9% year-on-year increase. Although slightly lower than analyst estimates, the bank’s pre-provision operating profit rose 24.3% to about Rs 23,650 crore.

Gross non-performing assets improved to 1.26% of gross advances, showing progress in asset quality. The bank’s distribution network expanded to 8,091 branches and 20,688 ATMs across 3,872 cities/towns, with a focus on semi-urban and rural areas.

Additionally, HDFC Bank’s domestic retail loans saw a significant growth of 111.1%, while commercial and rural banking loans increased by 31.4%. The bank’s capital adequacy ratio, as per Basel II guidelines, reached 18.4%, well above the regulatory requirement of 11.7%.

The bank’s strong performance can be attributed to its diverse non-interest revenue streams. Non-interest revenue for the quarter stood at approximately Rs 11,140 crore, with fees & commissions at Rs 6,940 crore and foreign exchange & derivatives revenue at Rs 1,210 crore.

HDFC Bank remains committed to optimizing its expenses while expanding its business. The bank’s operating expenses increased by 28.1% to Rs 15,960 crore, resulting in a cost-to-income ratio of 40.3% for the quarter.

The bank’s robust financial results underline its strong position in the market and highlight its ability to navigate the challenging economic landscape. With a focus on retail and corporate banking, HDFC Bank continues to demonstrate its resilience, offering stability, growth, and value to its customers and stakeholders.