HDFC Bank stock hits fresh highs on strong Q3 performance

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HDFC Bank on Saturday reported a net profit of Rs 8,758 crore against Rs 7,416.48 crore reported in the same period a year ago.

The bank's net profit for the third quarter of FY21 rose to Rs 8,758.3 crore on a YoY basis.

The bank's deposits grew 19% at Rs 12,71,123 crore from Rs 10,67,433 crore while advances grew 15% at Rs 10,82,324 crore.

Net revenue pay - premium procured less interest consumed - for the quarter finished December 2020 developed by 15.1 percent to Rs 16,317.6 crore from Rs 14,172.9 crore in the comparing time frame, driven by progresses development of 15.6 percent, and a center net interest edge for the quarter of 4.2 percent.

The bank's credit growth came at 15.6 per cent, while the net interest margin was 4.2 per cent.

"If there are regulations in terms of statutory appropriations like cash reserve ratio and statutory liquidity ratio, then HDFC Ltd along with other NBFCs will get affected", Macquarie analyst Suresh Ganapathy said in a note to clients on Monday.

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Individuals are required to wear a mask or face-covering in the indoor areas of businesses or organizations that are open. Data also shows that mobility and contacts between people have not decreased even with the current restrictions.

The bank made provisions and contingencies amounting to ₹3,414.1 crore consisting of specific loan provisions of ₹2,883.6 crore and general and other provisions of ₹159.9 crore, for the December quarter.

"Total provisions for the current quarter include contingent provisions of almost Rs 2,400 crore for proforma NPA as described in the asset quality section". Homegrown advances developed by 14.9 percent over December 2019.

The data also showed an improvement of 0.81 per cent in the gross non-performing assets (NPA) at as against 1.42 per cent in the year-ago period and 1.08 per cent at the end of the preceding September quarter. The restructuring under the RBI resolution framework for Covid-19 was approximately 0.5 per cent of advances, it said.

Operating expenses for the quarter ended December 31, 2020 were Rs 8,574.8 crore, an increase of 8.6% over Rs 7,896.8 crore during the corresponding quarter of the previous year.

The Supreme Court coordinated banks that accounts that were not pronounced NPA till August 2020 will not be proclaimed NPA until additional requests. It held contingent provisions of Rs 8,656 crore and floating provisions of Rs 1,451 crore as of December 31.

Level 1 auto was at 17.6 percent as of December 2020 contrasted with 17.1 percent as of December 2019, it added.

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