HDFC Bank’s financial metrics showed mixed trends, with a slight decline in net interest margin and a rise in gross non-performing assets
The shares of HDFC Bank were trading today at 10.55 a.m. on the NSE at ₹1,658.10, down ₹7.95 or 0.48 per cent.
HDFC Bank reported a modest 2 per cent year-on-year increase in net profit for the December quarter, reaching ₹16,740 crore. The bank’s financial performance revealed nuanced trends across key metrics. Net interest income grew 2 per cent quarter-on-quarter to ₹30,650 crore, with net interest margin slightly declining to 3.43 per cent from the previous quarter’s 3.5 per cent.
The bank’s asset quality showed a marginal deterioration, with gross non-performing assets (GNPA) rising to 1.42 per cent from 1.36 per cent in the previous quarter. However, CFO Srinivasan Vaidyanathan emphasized the overall portfolio’s strength, noting that seasonal agricultural slippages were the primary factor and the core portfolio remained stable.
Deposit growth outpaced credit expansion, with deposits increasing 16 per cent year-on-year to ₹25.63 lakh crore. Advances grew 6 per cent year-on-year to ₹26.83 lakh crore. Notably, retail loans expanded 10 per cent year-on-year to ₹13.42 lakh crore, while corporate loans contracted 10 per cent to ₹4.80 lakh crore.
HDFC Bank conducted loan sell-downs of ₹20,000 crore in the quarter and approximately ₹45,000 crore over the nine-month period. The bank’s strategic outlook involves maintaining robust deposit growth while keeping loan book expansion below the industry average in the current fiscal year. In subsequent years, the bank plans to align with and potentially exceed industry growth.
Source: www.thehindubusinessline.com
