HDFC Bank earnings review: Here are 10 key takeaways from its Q3 show

HDFC Bank earnings review: Here are 10 key takeaways from its Q3 show

on January 19, posted a steady set of numbers for the December quarter which were largely in line with estimates.

The asset quality for HDFC Bank was reported to be stable, but provisions rose considerably.

Interest income, on the other hand, also jumped by around 22 percent, helping in boosting profits for the quarter.

Here are key highlights from the bank’s December quarter performance.


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Net profit:

The private sector lender posted a 20.3 percent year-on-year (YoY) growth in its December quarter (Q3) net profit at Rs 5,585.85 crore on strong growth in its net interest income (NII). It had posted a profit after tax of Rs 4,642.60 crore in the same period last fiscal.

Net Interest Income:

The bank reported a net interest income of Rs 12,576.8 crore, a jump of 21.9 percent from Rs 10,314.3 crore for the quarter which ended on December 31, 2017. This jump was driven by asset growth of 23.7 percent and a core net interest margin for the quarter of 4.3 percent, the bank said in a statement.

Other income:

Other income grew to Rs 4,921.0 crore, a rise of 27.2 percent over Rs 3,869.2 crore in the corresponding quarter last year.

Asset quality:

HDFC Bank’s asset quality remained stable. Gross non-performing assets (NPA) was at 1.38 percent as against 1.33 percent at the end of Q2 FY19, and 1.29 percent posted in the year-ago period.

Net NPA as a percentage of net advances was 0.42 percent compared to 0.44 percent in the year-ago period and 0.40 percent in Q2 FY19.


Provisions rose by 63.6 percent YoY to Rs 2,211.53 crore in Q3. The bank said that the provisions for the third quarter include a charge of Rs 322.4 crore towards contingent provisions.


HDFC Bank’s total advances stood at Rs 7,80,951 crore. Domestic advances rose 24 percent. As per regulatory [Basel 2] segment classification, domestic retail loans grew by 24.0 percent and domestic wholesale loans grew by 24.1 percent, the bank said in a statement.


The total deposits held by HDFC Bank were at Rs 852,502 crore, an increase of 22.0 percent over December 31, 2017. CASA deposits grew at 13.0 percent, with savings account deposits at Rs 2,35,179 crore and current account deposits at Rs 1,11,905 crore.

Capital Adequacy

The total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 17.3 percent as on December 31, 2018 (15.5 percent as on December 31, 2017) as against a regulatory requirement of 11.025 percent.

Network addition:

The Bank’s distribution network consists of 4,963 banking outlets and 13,160 ATMs across 2,727 cities and towns, as against 4,734 banking outlets and 12,333 ATMs across 2,672 cities and towns as of December 31, 2017.

Balance sheet size:

The lender’s balance sheet size grew to Rs 11.68 lakh crore, a jump of 23 percent from Rs 9.49 lakh crore from the corresponding quarter of last year.