HDFC Bank's net profit up 18.5% to Rs 12,259 crore, net interest income up 25%

HDFC Bank released its Q3 results on Saturday. In the third quarter ended December 31, 2022, the bank's standalone net profit increased by 18.5% to Rs 12,259 crore. The bank's net profit stood at Rs 10,342 crore in the same quarter a year ago.
In the third quarter ending December 31, 2022, the bank's Net Interest Income (NII) increased by 25% to Rs 22,987.8 crore. In the same quarter of 2021, the bank's net interest income was Rs 18,443.5 crore. At the same time, the bank's core net interest margin was 4.1% on total assets and 4.3% on the basis of interest-earning assets.
HDFC Bank's net revenue in Q3 grew by 18.3% to Rs 31,487.7 crore. 26,627 crore in the same quarter last year. The bank's operating expenses increased by 26.5% to Rs 12,463.6 crore in the third quarter from Rs 9,851.1 crore in the corresponding quarter last year. The cost-to-income ratio of the bank stood at 39.6% in Q3.
Provisions and contingencies in the third quarter slightly decreased to Rs 2,806 crore from Rs 2,994 crore in the previous year. HDFC Bank's asset quality was stable for the last three months. The bank's non-performing assets (NPA) ratio remained unchanged at 1.23% and the net NPA ratio at 0.33%. Net non-performing assets stood at 0.33% of net advances as on December 31, 2022.
The bank's net advances grew by 19.5%, retail loans by 21.4%, commercial and rural banking by 30.2% and wholesale loans by 20.3% in the third quarter. The credit cost ratio of the bank declined to 0.74% as against 0.87% in the previous quarter and 0.94% in the year-ago quarter. Let us tell you that HDFC Bank closed at Rs 1,601 on Friday.