HDFC Bank Q3 Results 2023: Net profit up 18.5%, NII up 24.6%

announcing HDFC Bank Q3 Results 2023, Private lender reports strong growth net Interest Income (NII). In the recently ended December 2022 quarter, HDFC Bank has reported NII 22,987.9 crore, about 24.60 per cent higher than its NII 18,443.50 crore in Q3FY22.

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

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

The four components of other income for the quarter ended December 31, 2022 were fees and commission 6,052.6 crore ( 5,075.1 crore in the corresponding quarter of the previous year), foreign exchange and derivatives revenue 1,074.1 crore ( 949.5 crore in the corresponding quarter of the previous year), net trading and market income mark 261.4 crores ( 1,046.5 crore in the corresponding quarter of the previous year) and miscellaneous income, including realization 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 increased by 15.4 per cent in the quarter ended December 31, 2021.

HDFC Bank BOT has managed to report improvement in total debt to total assets ratio on QoQ and YOY basis. In Q3 of the current fiscal, HDFC Bank’s total loans to total assets stood at 9.18 per cent, compared to 9.29 per cent in Q2 FY2023 and 9.82 per cent in Q3 FY22.

The private lender’s total debt cost ratio stood at 0.74 per cent as compared to 0.94 per cent for the quarter ended December 31, 2021.

asset quality

Gross non-performing assets stood at 1.23 per cent of gross advances as on December 31, 2022 (one per cent excluding NPAs in the agriculture segment), while it stood at 1.23 per cent as on September 30, 2022 (excluding 1.03 per cent NPAs in the agriculture segment), and 31 1.26 per cent by December, 2021 (1.04 per cent excluding NPAs in agriculture segment). Net non-performing assets stood at 0.33 per cent of net advances as on December 31, 2022.

In Q2FY23, HDFC Bank posted a 22.30 per cent jump in its consolidated net profit. 11,125.21 cr.

HDFC Bank share price ended at Rs. 1,601 on Friday. The banking stock has appreciated over 18 per cent in last six months on NSE. However, HDFC Bank shares remained sideways, down around 3.50 per cent in the last one month.