HDFC Bank has reported 2%
growth in net profit at Rs 16735.50 crore for the quarter ended December 2024
(Q3FY2025). The net profit adjusted for trading & mark
to market gains, prior year one-off provisions and prior year tax credits, grew
by 13.6% over Q3FY2024. The bank has posted 8% growth in net interest income (NII), while
the core fee income of the bank improved 18% in Q3FY2025. The Net Interest
Margin (NIM) of the bank improved to 3.43% in Q3FY2025 compared to 3.40% in the
corresponding quarter of previous year.
On business front, the bank as has
posted 9% growth in business with 3% rise in loan book. The asset quality of
the bank has witnessed marginal pressure on account of higher agriculture
related slippages. Bank has substantially reduced the credit to deposit ratio
to 99.2% at end December 2024 from 111.5% at end December 2023. However, the
CASA ratio of the bank has declined to 34.0% at end December 2024 from 37.7% at
end December 2023.
Asset quality pressured by high
agriculture slippages: The bank has witnessed rise in fresh slippages of loan in
the agriculture segment in Q3FY2025.
The fresh slippages of loans stood at
Rs 8800 crore in Q3FY2025 compared with 7800 crore in previous quarter and Rs 7000
crore in the corresponding quarter last year.
The recoveries and upgradations of NPAs
stood at Rs 4000 crore, while the write-off of loans was at Rs 3100 crore in
Q3FY2025.
Provision coverage ratio declined to 68.00%
at end December 2024 compared to 70.00% a quarter ago and 75.00% a year ago.
The capital adequacy ratio of the bank
stood at 20.0% with Tier I ratio at 18.0% at end December 2024.
The risk weighted assets of the bank
has increased 6% YoY to Rs 2530500 crore end December 2024,
Asset Quality
Indicators: HDFC Bank
|
|
Dec-24
|
Sep-24
|
Jun-24
|
Mar-24
|
Dec-23
|
Variation
|
QoQ
|
YTD
|
YoY
|
Gross NPA (Rs Crore)
|
36018.58
|
34250.62
|
33025.69
|
31173.32
|
31011.67
|
5
|
16
|
16
|
Net NPA (Rs Crore)
|
11587.54
|
10308.54
|
9508.44
|
8091.74
|
7664.10
|
12
|
43
|
51
|
% Gross NPA
|
1.42
|
1.36
|
1.33
|
1.24
|
1.26
|
6
|
18
|
16
|
% Net NPA
|
0.46
|
0.41
|
0.39
|
0.33
|
0.31
|
5
|
13
|
15
|
% PCR
|
68.00
|
70.00
|
71.00
|
74.00
|
75.00
|
-200
|
-600
|
-700
|
% CRAR - Basel III
|
19.97
|
19.77
|
19.33
|
18.80
|
18.39
|
20
|
117
|
158
|
% CRAR - Tier I - Basel III
|
18.00
|
17.80
|
17.30
|
16.80
|
16.80
|
20
|
120
|
120
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Strong deposit growth driving business
growth: The business of the bank has increased 9% YoY to Rs 5106395 crore
end December 2024, driven by Deposits rising 16% to Rs 2563795 crore. The advances
of the bank rose at slow pace of 3% to Rs 2542600 crore at end December 2024.
CASA deposits ratio declines on strong
term deposit growth: The CASA deposits of the bank increased 4% YoY to Rs 872700 crore
at end December 2024. The current account deposits increased 4% to Rs 267100 crore,
while saving account deposits also moved up 4% to Rs 605600 crore end December
2024. The CASA ratio declined to 34.0% at end December 2024 compared to 37.7% at
end December 2023, while declined from 35.3% a quarter ago. The term deposits
have increased 23% to Rs 1691095 crore end December 2024.
Retail loans driving loan growth: Advances growth was driven by retail
loans rising 10% YoY to Rs 1342500 crore at end December 2024, while credit to
agriculture increased 16% to Rs 107600 crore and MSME 11% to Rs 753200 crore at
end December 2024. The corporate credit has declined -10% to Rs 480600 crore
end December 2024. The overseas credit increased 9% to Rs 45767 crore end
December 2024.
Investment book of the bank increased 20% YoY to Rs 811853 crore at end
December 2024.
Margins steady: The bank has maintained steady cost of
funds at 4.9%, while yield on asset rose 10 bps YoY to 8.3% in Q3FY2025. Thus,
the NIM has improved 3 bps YoY to 3.43%., while eased 3 bps qoq to 3.43%
Branch expansion: The bank has added 51 branches and 56 ATMs
in Q3FY2025. End December 2024, the Bank’s distribution network
was at 9143 branches and 21049 ATMs across 4101 cities / towns as against 8091
branches and 20688 ATMs across 3872 cities / towns end December 2023. About 51%
of branches are in semi-urban and rural areas. In addition, the bank has 15196
business correspondents, which are primarily manned by Common Service Centres
(CSC). The number of employees were at 210219 end December 2024 (as against
208066 end December 2023).
Book value of the bank stood at Rs 631.5 per share
at end December 2024, while the adjusted book value (net of NNPA and 10% of
restructured advances) was Rs 616.0 per share at end December 2024.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 8% increase in the
interest earned at Rs 76006.88 crore, while interest expenses increased 8% to
Rs 45353.63 crore in Q3FY2025. NII improved 8% to Rs 30653.25 crore in the
quarter ended December 2024.
Healthy growth in the core fee income: Bank has posted strong 18% growth in
core fee income to Rs 8180 crore, while the recoveries and other income jumped 18%
to Rs 1790 crore and forex income moved up 16% to Rs 1400 crore. However, the
treasury income declined -95% to Rs 70 crore, allowing only moderate 3% rise in
the overall non-interest income to Rs 11453.56 crore in the quarter ended
December 2024.
Stable expenses ratio: The operating expenses of the bank
increased 7% to Rs 17106.41 crore, as other expenses moved up 5% to Rs 11156 crore,
while employee expenses increased 11% to Rs 5950.41 crore in Q3FY2025. Cost to
income ratio was nearly stable at 40.6% in Q3FY2025 compared with 40.3% in
Q3FY2024, helping the Operating Profit to increase 6% to Rs 25000.40 crore.
Provisions and contingencies decline: The bank has showed -25% decline in
provisions to Rs 3153.85 crore. PBT increased 12% to Rs 21846.55 crore in
Q3FY2025.
Effective tax rate increased to
23.4% in Q3FY2025
from 15.7% in Q3FY2024. Net Profit rose by 2% YoY to Rs 16735.50 crore during
quarter ended December 2024.
Consolidated
Financial Results
The Bank’s consolidated net revenue was Rs 65280 crore
for Q3FY2025. The consolidated profit after tax was Rs 17660 crore in Q3FY2025.
The consolidated PAT adjusted for trading & mark to market gains, prior
year one-off provisions and prior year tax credits, grew by 13.1%. The
consolidated PAT for 9MFY2025 was Rs 51960 crore. The book value was Rs 656.6
end December 2024.
Subsidiaries
HDB Financial Services (HDBFSL), is a non-deposit
taking NBFC in which the Bank holds a 94.5% stake. For Q3FY2025, HDBFSL’s net
revenue was at Rs 2500 crore. Profit after tax for Q3FY2025 was Rs 470 crore
compared to Rs 640 crore for Q3FY2024. Profit after tax for 9MFY2025 was Rs
1650 crore. The total loan book was Rs 102100 crore end December 2024. Stage 3
loans were at 2.25% of gross loans. Total CAR was at 19.2% with Tier-I CAR at
14.4%.
HDFC Life Insurance Company Ltd (HDFC Life), in
which the Bank holds a 50.3% stake, is a leading life insurance solutions
provider. Profit after tax for Q3FY2025 was Rs 410 crore compared to Rs 370
crore for Q3FY2024, a growth of 13.7%. Profit after tax for 9MFY2025 was Rs
1330 crore.
HDFC ERGO General Insurance Company Ltd (HDFC
ERGO), in which the Bank holds a 50.5% stake, offers a range of general
insurance products. Profit after tax for Q3FY2025 was Rs 100 crore, as against
profit after tax of Rs 130 crore for Q3FY2024. Profit after tax for 9MFY2025
was Rs 430 crore.
HDFC Asset Management Company Ltd (HDFC AMC), in
which the Bank holds a 52.5% stake, is the Investment Manager to HDFC Mutual
Fund, and offers a comprehensive suite of savings and investment products. For
Q3FY2025, HDFC AMC’s Quarterly Average Assets Under Management were
approximately Rs 787400 crore. Profit after tax for Q3FY2025 was Rs 640 crore
compared to Rs 490 crore for Q3FY2024, a growth of 31.0%. Profit after tax for
9MFY2025 was Rs 1820 crore.
HDFC Securities Ltd (HSL), in which the Bank holds a
94.6% stake, is amongst the leading broking firms. For Q3FY2025, HSL’s total
revenue was Rs 790 crore. Profit after tax for Q3FY2025 was Rs 270 crore, as
against Rs 230 crore for Q3FY2024, a growth of 16.0%. Profit after tax for
9MFY2025 was Rs 870 crore.
Financial Performance 9MFY2025:
Bank has posted 12% increase in net
profit to Rs 49731.23 crore in the nine months ended December 2024 (9MFY2025). The
net interest income increased 14% to Rs 90604.30 crore, while non-interest
income moved up 8% to Rs 33604.40 crore, pushing up net total income by 12% to
Rs 124208.70 crore in 9MFY2025. The operating expenses increased 11% to Rs 50617.91
crore, while provision and contingencies declined 15% to Rs 8456.37 crore, allowing
profit before tax to increase 18% to Rs 65134.42 crore in 9MFY2025. The
cost-to-income ratio improved to 40.8% in 9MFY2025 compared to 41.1% in
9MFY2024. An effective tax rate rose to 23.6% in 9MFY2025 compared to 19.6% in
9MFY2024. The net profit has increased 12% to Rs 49731.23 crore in 9MFY2025.
HDFC Bank: Results
|
Particulars
|
2412 (3)
|
2312 (3)
|
Var %
|
2412 (9)
|
2312 (9)
|
Var %
|
2403 (12)
|
2303 (12)
|
Var %
|
Interest Earned
|
76006.88
|
70582.61
|
8
|
223056.94
|
186867.81
|
|
258340.56
|
161585.55
|
|
Interest Expended
|
45353.63
|
42111.27
|
8
|
132452.64
|
107412.17
|
|
149808.09
|
74743.31
|
|
Net Interest Income
|
30653.25
|
28471.34
|
8
|
90604.30
|
79455.64
|
|
108532.47
|
86842.24
|
|
Other Income
|
11453.56
|
11137.04
|
3
|
33604.40
|
31074.74
|
|
49240.99
|
31214.83
|
|
Net Total Income
|
42106.81
|
39608.38
|
6
|
124208.70
|
110530.38
|
|
157773.46
|
118057.07
|
|
Operating Expenses
|
17106.41
|
15961.08
|
7
|
50617.91
|
45417.18
|
|
63386.01
|
47652.09
|
|
Operating Profits
|
25000.40
|
23647.30
|
6
|
73590.79
|
65113.20
|
|
94387.45
|
70404.98
|
|
Provisions & Contingencies
|
3153.85
|
4216.64
|
-25
|
8456.37
|
9980.50
|
|
23492.14
|
11919.67
|
|
Profit Before Tax
|
21846.55
|
19430.66
|
12
|
65134.42
|
55132.70
|
|
70895.31
|
58485.31
|
|
EO
|
0.00
|
0.00
|
|
0.00
|
0.00
|
|
0.00
|
0.00
|
|
PBT after EO
|
21846.55
|
19430.66
|
12
|
65134.42
|
55132.70
|
|
70895.31
|
58485.31
|
|
Provision for tax
|
5111.05
|
3058.12
|
67
|
15403.19
|
10832.28
|
|
10083.03
|
14376.60
|
|
PAT
|
16735.50
|
16372.54
|
2
|
49731.23
|
44300.42
|
|
60812.28
|
44108.71
|
|
EPS*(Rs)
|
87.5
|
85.6
|
|
86.7
|
77.2
|
|
79.5
|
57.7
|
|
Adj BV (Rs)
|
616.0
|
545.5
|
|
616.0
|
545.5
|
|
568.3
|
491.4
|
|
* Annualized on current equity
of Rs 764.83 crore. Face Value: Rs 1, Figures in Rs crore, Figures for 2412 (9) and 2403 (12) relates to merged entity and are not comparable with earlier periods
|
Source: Capitaline Corporate
Database
|
|