HDFC Bank Q3 Review – Online Earnings; Balance sheet strengthens further: Motilal Oswal


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HDFC Bank Ltd. posted a quarter in line, with net interest income/operating profit before provision growth of 13%/10.5% year-on-year. After-tax profit rose 18% year-on-year to Rs 103.4 billion (online).

Profitability remained stronger despite the bank creating additional provisions of Rs 9 billion, bringing the total buffer to ~Rs 86.4 billion (~70 basis points of lending).

HDFC Bank saw a healthy recovery in business, with lending growing 5.2% quarter-on-quarter. The retail segment grew 13.3% year-on-year, while commercial and rural banking grew 29.4%. Current account and savings account deposits increased by 24.6% year-on-year and the mix now stands at 47.1%.

On the asset quality front, the gross non-performing assets/net non-performing assets ratio improved by 9 bps/3 bps QoQ to 1.26%/0.37%, with slippages to Rs 46 billion ( 1.6% of loans).

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