During the quarter, HDFC Bank’s net interest income (NII) rose 10% year-on-year to Rs 30,113 crore and was in line with ET Now survey estimates.
The core net interest margin (NIM) stood at 3.46% on total assets and 3.65% on interest-bearing assets.
The lender’s total deposits grew 15.1% year-on-year in the September quarter to Rs 25,00,100 crore, while gross advances registered a growth of 7% year-on-year to Rs 25,19,000 crore.
As of end-September, HDFC Bank’s gross NPA rose to 1.36% of gross advances, up from 1.33% in Q1FY25 and 1.34% in Q2FY24 .
Net non-performing assets accounted for 0.41% of net advances at the end of the second quarter. HDFC Bank said its other income (non-interest income) for the quarter ended September 2024 rose to Rs 11.48 billion as against Rs 10.71 billion in the corresponding quarter. quarter ended September 30, 2023. Operating expenses for the quarter increased 9.7% to Rs 16,890 crore as against Rs 15,400 crore during the corresponding quarter of the previous year.
The cost-income ratio for the quarter was 40.6%.
Provisions and contingencies for the quarter ended September 30, 2024 were Rs 2,700 crore as against Rs 2,900 crore for the quarter ended September 30, 2023. The total credit cost ratio was 0.43%, compared to 0.49% for the quarter ending in September. 30, 2023.
Balance
HDFC Bank’s total balance sheet size increased to Rs 36,88,100 crore as against Rs 34,16,300 crore year-on-year. Total deposits increased by 15.1% to Rs 25,00,100 crore, while CASA deposits grew by 8.1% with savings account deposits at Rs 6,08,100 crore and current account deposits at Rs 2.75. 400 crores.
Time deposits stood at Rs 16,16,500 crore, an increase of 19.3% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 35.3% of total deposits at the end of September.
The bank’s average deposits were Rs 23,54,000 crore for the September quarter, a growth of 15.5% over Rs 20,38,500 crore recorded in the September 2023 quarter.
“Gross advances increased by 7% year-on-year to Rs 25,19,000 crore. Advances under management, coupled with transfers through interbank participation certificates, bill rediscounts and securitisations/assignments, grew by 8.0% over as of September 30, 2023,” HDFC Bank said.
Retail loans grew by 11.3%, commercial and rural banking loans by 17.4% and corporate and other wholesale loans decreased by 12.0%.
Advances abroad constituted 1.7% of total advances. The bank’s advances under management, on average, grew 10.2% year-on-year to Rs 25,63,900 crore in the September quarter.
The bank’s total capital adequacy ratio (CAR) as per Basel III guidelines was 19.8% in Q2FY25 against 19.5% in Q2FY24, against a regulatory requirement of 11.7%. The Tier 1 CAR was at 17.8% and the Common Equity Tier 1 capital ratio was at 17.3% at the end of September.
On Friday, HDFC Bank shares ended 0.47% higher at Rs 1,681.15 on the BSE.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.