HDFC Bank on Saturday posted 20.3 per cent year-on-year growth in net profit at Rs 5,586 crore for quarter ended December 2018, in line with ETNow's estimate of Rs 5,603 crore.Higher net interest income and other income supported bottom line numbers.
Here are key takeaways from HDFC Bank's third-quarter earnings.
NII: Net interest income -- interest earned less interest expended -- increased by 21.90 per cent YoY to Rs 12,576.80 crore in Q3FY19, driven by asset growth of 23.70 per cent and a core net interest margin of 4.30 per cent for quarter.
Other income: Non-interest revenue jumped 28.18 per cent YoY to Rs 4,921.01 crore for said quarter.Asset quality: Percentage of gross non-performing assets stood at 1.38 per cent as of December-end against 1.33 per cent in preceding September quarter and 1.29 per cent in corresponding quarter of previous year.
Net NPA stood at 0.42 per cent against 0.40 per cent on a quarter-on-quarter basis.GNPA and NNPA (absolute figures): Gross non-performing assets in absolute terms stood at Rs 10,902.86 crore during quarter under review against Rs 10,097.73 crore a year before.
Net non-performing assets stood at Rs 3,301.54 crore against Rs 3,028.24 crore during same period.Cost-to-income: The core cost-to-income ratio for quarter stood at 39.5 per cent as against 41.2 per cent in quarter ended December 2017.Provisions: Provisions increased by 63.64 per cent YoY to Rs 2,211.53 crore, against Rs 1,351.44 crore in year-ago quarter.Total deposit and CASA: Total deposits increased by 22 per cent YoY to Rs 8,52,502 crore.
CASA deposits grew at 13 per cent with savings account deposits at Rs 2,35,179 crore and current account deposits at Rs 1,11,905 crore.
CASA deposits accounted for 40.7 per cent of total deposits as of December 31, 2018.
Total advances stood at Rs 780,951 crore as of December 31, 2018, while domestic advances grew by 24.1 per cent YoY over December 31, 2017.Analyst take: Sameer Kalra, Equity Research Analyst and Founder, Target Investing said: HDFC Bank NIM grew 18 per cent YoY and 9 per cent QoQ despite increase in cost of funds.
Asset quality remained almost stable.
EBIT growth has been supported with Treasury EBIT growth of 58 per cent YoY and other banking operations ( Ex- Lending) EBIT growth of 37 per cent.
In short, results are stable in our opinion and stock may see a gap-up opening on Monday.On Friday, shares of bank settled at Rs 2,131.20 on BSE, up 0.10 per cent against their previous close.
On other hand, BSE Sensex closed 0.03 per cent up at 36,386.61.
Balance sheet: Total balance sheet size of HDFC Bank stood at Rs 1,168,556 crore as of December 31, 2018 against Rs 9,49,079 crore last year.