In the current quarter, HDFC Bank witnessed a significant YoY increase in Net Interest Income (NII), reaching Rs 28,470 crore, marking a 23.9% growth. This compares to Rs 22,990 crore reported in the corresponding quarter of the previous year.
HDFC Bank Ltd reported a 33.54% YoY increase in standalone net profit for the December quarter, reaching Rs 16,372.54 crore compared to Rs 12,259.49 crore in the corresponding quarter last year. The profit aligns closely with market expectations. The quarter also saw Net Interest Income (NII) rise by 23.9% YoY to Rs 28,470 crore, as opposed to Rs 22,990 crore in the same quarter the previous year. However, NII growth slightly missed analyst projections, which had estimated a 25% increase.
The pre-provision operating profit demonstrated a significant increase of 24.3%, reaching around Rs 23,650 crore. Provisions for the quarter escalated to approximately Rs 4,220 crore from Rs 2,810 crore in the corresponding quarter of the previous year. HDFC Bank reported a core net interest margin (NIM) of 3.4% on total assets and 3.6% on interest-earning assets.
In a preview of HDFC Bank's Q3 results, it is anticipated that profit growth may be around 30%, with a likely recovery in Net Interest Margin (NIM), although provisions are expected to see an increase. As of December 31, 2023, gross non-performing assets stood at 1.26% of gross advances, compared to 1.34% as of September 30, 2023, and 1.23% as of December 31, 2022. Net non-performing assets were at 0.31% of net advances as of December 31, 2023.
For the quarter ending on December 31, 2023, non-interest revenue amounted to approximately Rs 11,140 crore, a notable increase from Rs 8,500 crore in the same period of the previous year. Within the various components of other income, fees and commissions reached Rs 6,940 crore, up from Rs 6,050 crore YoY.
Foreign exchange and derivatives revenue totaled Rs 1,210 crore compared to Rs 1,070 crore YoY, while net trading and mark-to-market gain were Rs 1,470 crore, a significant increase from the Rs 260 crore gain YoY. Miscellaneous income, encompassing recoveries and dividends, stood at Rs 1,520 crore, up from Rs 1,110 crore.
HDFC Bank reported a 28.1% increase in operating expenses, reaching Rs 15,960 crore compared to Rs 12,460 crore in the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was 40.3%.
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