MUMBAI: The nation’s second largest lender HDFC Bank has reported a strong set of numbers with the net income jumping 10.8 percent on-year to Rs 18,641.3 crore for the September quarter aided by higher other income and steady core performance, stumping the analysts who were expecting very muted performance.
The largest private sector lender’s other key numbers also surpassed the street estimates, with a massive drop in provisions and major improvement in asset quality and rebalancing of cost of funds.
On consolidated basis net income rose 10 percent to Rs 19,610.67 crore in the reporting quarter, the lender informed the exchanges Saturday.
Overall provisions increased to Rs 3,500 crore from Rs 2,700 crore in the year-ago period, but was only a fraction of the Rs 14,441 crore recorded in the previous quarter.
The core net interest income increased 4.8 percent on-year to Rs 31,551.5 crore from Rs 30,113.9 crore in the same quarter last year, the bank said in an exchange filing Saturday.
Other income rose 25 percent to Rs 14,350 crore, providing a story boost to overall earnings.
Provisions and contingencies for the quarter rose 29.6 percent to Rs 3,500.5 crore from Rs 2,700.5 crore.
Asset quality improved on a yearly basis with gross non-performing assets declining 7.42 percent to Rs 34,289.48 crore from Rs 37,040,80 crore, while Net NPA falling 6.75 percent to Rs 11,447.29 crore from Rs 12,275.99 crore.
During the quarter, gross NPAs as a percentage of gross advances dropped 16 bps to 1.24 from 1.40, and Net NPA ratio fell 5 bps to 0.42 from 0.47.
The bank also booked a one time gain from the listing of its subsidiary HDB Financial in late June wherein it sold 13.51 percent of its holding at Rs 740 a share, resulting in a pre-tax gain of Rs 9,128.4 crore net of estimated IPO-related expenses.
Overall income of the bank rose to Rs 91,040 crore as against Rs 85,499 crore in the year-ago period, and Rs 99,200 crore in the June quarter.
The core net interest income grew 4.8 percent to Rs 31,551.5 crore from Rs 30,114 crore, while core net interest margin was at 3.27 percent on total assets, reflecting assets repricing faster than deposits, as against 3.35 percent for the June quarter.
Total deposits were at Rs 28 trillion, an increase of 12.1 percent. The low cost Casa deposits grew by 7.4 percent with savings account deposits at Rs 6.5 trillion and current account deposits at Rs 2.96 trillion. The Casa deposits comprise 33.9 percent of total deposits, the bank said.
Gross advances rose 9.9 percent to Rs 27.7 trillion. Advances under management grew by 8.9 percent. Retail loans grew by 7.4 percent, small and mid-market enterprises loans grew by 17 percent and corporate and other wholesale loans grew by 6.4 percent. Overseas advances constituted 1.8 percent of total advances.
