HDFC Bank has announced a 17.6% year-on-year hike in their net profit for the September quarter, of the current fiscal. HDFC bank, one of the most significant private sector banks operating in the country has published their financial results today, on October 16. Their September quarter's net profits stood at Rs. 8,834.30 crore compared with Rs. 7,513.11 crore in the same quarter, in the earlier fiscal.
Loan and NPA
HDFC Bank's loan growth also improved in this quarter. As the bank officially mentions, "Retail segment that registered 12.9% year-on-year growth and commercial and rural banking segment that grew 27.6% year-on-year during the quarter," and other wholesale loans grew by around 6% percent year-on-year. Significantly, Gross non-performing assets as a percentage of gross advances, in this quarter stood at 1.35% compared with 1.47% in the earlier (June) quarter. In the September quarter of the previous fiscal, the same was at 1.37%, showing an improvement in this quarter. Excluding NPA in the agriculture segment, NPAs for the September quarter came in at 1.2%.
Net Interest Income
The bank's Net Interest Income or NII has hiked by 12.1% on a year-on-year basis to Rs. 17,684.40 crore for the September quarter, compared to Rs. 15,776.40 crore in the same quarter, in the earlier fiscal. NII is the "difference between the interest income a bank from its lending activities and the interest it pays to depositors". HDFC Bank has officially announced in the BSE filing, "Advances grew at 15.5% reaching new heights driven through relationship management, digital offering, and breadth of products." On the other hand, the bank added, "core net interest margin was at 4.1%." HDFC's advances grew to Rs. 11.98 lakh crore in the September quarter on a year-on-year basis.
HDFC Bank's CASA deposits grew by 28.7% on a year-on-year basis in the September quarter and stood at Rs. 6.58 lakh. Additionally, the CASA ratio grew around 47% till September, this year, compared to 41.6% in Q2FY20 and 45.5% in Q1FY22.