HDFC Bank Q3 results out: PAT rose by 18.5%

HDFC Bank Q3 results are out now, read here! Beating the street estimates, HDFC Bank Ltd has reported strong rise in net profit and net interest income on year-on-year (YoY) basis. The private lender reported a net profit of ₹12,259.50 crore in Q3FY23 against Q3FY22 net profit of ₹10,342.20 crore, logging around 18.50 per cent YoY rise in recently ended December 2022 quarter.

While announcing HDFC Bank Q3 results 2023, the private lender reported robust growth in net interest income (NII). In recently ended December 2022 quarter, HDFC Bank has reported NII of ₹22,987.9 crore, around 24.60 per cent higher from its NII of ₹18,443.50 crore in Q3FY22.

The private lender has cut down provisioning on both quarter-on-quarter (QoQ) basis and year-on-year (YoY). In Q3FY23, HDFC Bank has reported provisions at ₹2,806.4 against ₹3,240.1 crore in Q2FY23. In Q3FY22, HDFC Bank had reported provisions at ₹2,994 crore. So, the private bank has cut down its provisions by 6.26 per cent on YoY basis and around 13.40 per cent on QoQ basis.

HDFC Bank’s net revenue, grew by 18.3% to ₹31,487.7 crore for the quarter ended December 31, 2022 from ₹26,627.0 crore for the quarter ended December 31, 2021. Excluding net trading and mark to market income, the net revenue grew by 22.1 per cent over the quarter ended December 31, 2021.

Other figures of HDFC bank Q3

The four components of other income for the quarter ended December 31, 2022 were fees & commissions of ₹6,052.6 crore ( ₹5,075.1 crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of ₹1,074.1 crore ( ₹949.5 crore in the corresponding quarter of the previous year), net trading and mark to market income of ₹261.4 crore ( ₹1,046.5 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveries and dividend, of ₹1,111.8 crore ( ₹1,112.5 crore in the corresponding quarter of the previous year). Other income, excluding net trading and mark to market income, grew by 15.4 per cent over the quarter ended December 31, 2021.

HDFC Bank has managed to report improvement in total debt total asset ratio on QoQ and YoY basis. In third quarter of this FY, it’s total debts to total assets stand at 9.18% that stood at 9.29% in Q2FY23 and 9.82% in Q3FY22.

The total credit cost ratio of the private lender was at 0.74 per cent, as compared to 0.94 per cent for the quarter ending December 31, 2021.

Asset quality

Gross non-performing assets were at 1.23% of gross advances as on December 31, 2022 (1% excluding NPAs in the agricultural segment), as against 1.23% as on September 30, 2022 (1.03% excluding NPAs in the agricultural segment), and 1.26% as on December 31, 2021 (1.04% excluding NPAs in the agricultural segment). Net non-performing assets were at 0.33% of net advances as on December 31, 2022.

In Q2FY23, HDFC Bank had reported 22.30% jump in its consolidated net profit at ₹11,125.21 crore.

A Nitin Kaushik

Watch this video by CA Nitin Kaushik to Quarterly Results in detail.