HDFC Bank Q3 Result 2024: HDFC Bank’s net interest income for the December quarter of 2024 stood at ₹28,470 crore, marking a noteworthy 24% year-on-year increase, as per the Q3 results.
HDFC Bank Q3 Result 2024
HDFC Bank unveiled its Q3FY24 results today, January 16, showcasing an impressive 33% surge in net profit, reaching ₹16,372 crore compared to ₹12,259 crore last year.
The bank’s net interest income for the December quarter hit ₹28,470 crore, marking a substantial 24% Year-on-Year growth.
Over the past three months, HDFC Bank’s stock price has soared by more than nine percent, and over the year, it has seen a gain of just over 5.5 percent.
This contrasts with Nifty 50’s 12% rise in three months and a remarkable 23% surge in one year. Meanwhile, Bank Nifty has experienced a growth of over nine percent in three months and 14.5 percent in one year.
HDFC Bank Q3 Result 2024: Bank Shares Tomorrow
Keep an eye on HDFC Bank’s stock in tomorrow’s trading session following the release of its Q3FY24 results today. In Tuesday’s session, the shares closed slightly up by 0.42% at ₹1,678.95 per share on the BSE.
HDFC Bank Q3 Result 2024:Profit Growth At 30%
- Gross non-performing assets (NPAs) were 1.26% of gross advances as of December 31, 2023, down from 1.34% in September 2023 and slightly up from 1.23% in December 2022.
- Net NPAs were 0.31% of net advances as of December 31, 2023.
- Non-interest revenue for Q3FY24 was approximately Rs 11,140 crore, a significant increase from Rs 8,500 crore in the same quarter of the previous year.
- Among other income components, fees & commissions were Rs 6,940 crore, foreign exchange & derivatives revenue was Rs 1,210 crore, and net trading and mark-to-market gain stood at Rs 1,470 crore.
- Miscellaneous income, including recoveries and dividends, amounted to Rs 1,520 crore.
- Operating expenses increased by 28.1% to Rs 15,960 crore, resulting in a cost-to-income ratio of 40.3% for the quarter.
- The total Capital Adequacy Ratio (CAR) as per Basel II guidelines was 18.4%, slightly lower than 19.4% YoY but well above the regulatory requirement of 11.7%.
- HDFC Bank’s distribution network included 8,091 branches and 20,688 ATMs across 3,872 cities/towns as of December 31, 2023, with 52% of branches in semi-urban and rural areas.
- The bank had 15,053 business correspondents, primarily manned by Common Service Centres (CSC), and the number of employees increased to 2,08,066 as of December 31, 2023, from 1,66,890 a year earlier.
- Domestic retail loans grew by 111.1%, commercial and rural banking loans by 31.4%, and corporate and other wholesale loans (excluding non-individual loans of eHDFC Ltd) by 11.2%.
- Overseas advances constituted 1.7% of total advances.
HDFC Bank Q3 Result 2024: Loans
HDFC Bank faced a 97 basis points reduction in capital due to increased risk weights on unsecured loans. Despite this, the bank mentioned that the expansion in unsecured loans has been moderate.
In addition, the bank disclosed an exposure of ₹1,220 crore to alternative investment funds (AIFs), emphasizing that the necessary provisions had been made to cover this exposure.
It’s worth noting that last month, the Reserve Bank of India imposed restrictions on entities under its regulation, preventing them from investing in AIFs with connections to recent borrowers. In cases where an exit was not feasible, provisions were required against such exposure.
HDFC Bank Q3 Result 2024: HDB Financial Services
HDB Financial Services, HDFC Bank’s non-banking unit, is gearing up for its IPO process, set to kick off in the coming months. According to the bank’s CFO, Srinivasan Vaidyanathan, the plan is to get HDB Financial Services listed by September 2025.
HDFC Bank targets 13,000+ branches in the next 3-5 years.
HDFC Bank plans to expand its branch network to over 13,000 in the next three to five years, according to Srinivasan Vaidyanathan, Chief Financial Officer (CFO) of HDFC Bank.
He mentioned the addition of 908 branches in the last twelve months and 146 branches in the last quarter during the bank’s post-results press conference on January 16.
READ MORE ABOUT: Polycab Share Price: Market Watch & Jefferies’ Projections.
HDFC Bank Q3 Result 2024: Revenue grew 25% to ₹39,600 crore
HDFC Bank’s consolidated total income surged to ₹1,15,015 crore, a substantial increase from ₹54,123 crore in the corresponding quarter of the previous year.
The net revenue witnessed a robust growth of 25.8%, reaching ₹39,600 crores in the December quarter.
Notably, this marks HDFC Bank’s second earnings report following its merger with the parent company, Housing Development Finance Corp (HDFC), in July.
HDFC Bank Q3 Result 2024: Q3 deposits increased by 1.9% QoQ to ₹22.14 lakh crore.
In Q3, HDFC Bank’s deposits rose by 1.9% to ₹22.14 trillion, showing a YoY growth of 27.7%. Retail deposits increased by 2.9%, while wholesale deposits saw a 3.4% decline.
The bank’s CASA deposits reached around ₹8.35 trillion, growing by 2.2% QoQ. Notably, retail CASA exhibited a significant 10.0% growth since December 2022.
The CASA ratio stood at approximately 37.7% as of December 31, 2023, compared to 44.0% a year earlier and 37.6% at the end of September 2023.
Conclusion:
HDFC Bank’s Q3 2024 results reveal a robust performance, with a 33% increase in net profit and a 24% growth in net interest income. The stock performed well, outpacing market indices.
The bank plans to expand its branch network and initiate an IPO for HDB Financial Services. Despite reducing capital due to unsecured loans, the bank’s overall financial health remains strong, reflecting prudent risk management.
