HDFC Bank today announced a net income of Rs 26,627 crore at the end of the quarter ended 31 December 2021, representing a year-on-year increase of 12.1%. The bank had reported net income of Rs 23,760.8 crore in the corresponding period last year.
The bank reported consolidated net profit of Rs 10,591 crore, up 20.8% year-on-year, and consolidated advances of Rs 13.12,142 crore, up 15.8% year-on-year.
In its quarterly earnings report, the bank also reported a 13% year-on-year growth in its net interest income (NII) – Rs 18,443.5 crore from Rs 16,317.6 crore at the end of December 2020 This was largely in line with what analysts had predicted in a CNBC-TV18 poll – Rs 18,521.2 crore. The bank further reported an after-tax profit of Rs 10,342.2 crore, which was better than analysts’ expectations of Rs 10,179.1 crore.
In its report, the bank reported non-interest income of Rs 8,183.6 crore, which it said increased by 9.9% and accounted for 30.7% of net income in the last quarter. The bank further reported the four components of other income for Q3FY22 – fees and commissions at Rs 5,075.1 crore (4,9974.9 crore in Q3FY21), currencies and derivatives at Rs 949.5 crore (562.2 crore). Rs as of Q3FY21), gain on sale/revaluation of investments at Rs 1,046.5 crore (Rs 1,109 crore as of Q3FY21) and miscellaneous income – including recoveries and dividends – at Rs 1,112.5 crore (Rs 797, 1 crore in Q3FY21).
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“We have added 294 branches and 16,852 people over the past 12 months and made other investments to position ourselves and capitalize on the growth opportunity,” the bank said in the report, adding that its operating expenses for the last quarter stood at Rs 9,851.1 crore. , a 14.9% year-on-year increase from Rs 8,574.8 crore in Q3FY21. The bank reported a cost/income ratio of 37%.
The bank reported a total balance sheet of Rs 19,38,286 crore as of December 31, 2021, compared to Rs 16,54,228 crore a year ago, representing a growth of 17%. The bank’s total deposits at the end of Q3FY22 stood at Rs 14,45,918 crore, an increase of 13.8% year-on-year. The bank’s CASA deposits increased by 24.6%, with savings account deposits at Rs 4,71,029 crore and current account deposits at Rs 7,64,693 crore, an increase of 5.6% in year-on-year.
The bank recorded a 13.3% growth in personal loans, a 29.4% increase in commercial and rural bank loans and a 7.5% increase in corporate and other wholesale loans.
In the report, as of December 31, 2021, the bank reported a distribution network of 5,779 branches 17,238 ATMs/cash machines in 2,956 cities and towns.
The bank said its gross non-performing assets were 1.26% of gross advances, down from 1.35% quarter-on-quarter and 1.385 year-on-year. Net non-performing assets represented 0.37% of net advances. The bank also said it held floating provisions of Rs 1,451 crore and contingent provisions of Rs 8,636 crore at the end of Q3FY22. According to the report, total provisions – specific, floating, contingent and general – accounted for 172% of non-performing loans.
(Edited by : Vijay Anand)
First post: STI