HDFC Bank Q3 net profit jumps 34% to Rs 16,373 cr
HDFC Bank, India's biggest by market value, kicked off third-quarter earnings for banks with a 34% on-year rise in net profit, underpinned by strong growth in retail loans and fee incomes. The bank, which merged its mortgage-lending parent into itself last year, is focused on mobilising deposits that have lately trailed credit growth.
Bank Deposits Climb 28% YoY
The Mumbai-based lender's December quarter net profit rose to ₹16,373 crore, from ₹12,259 crore a year earlier, with the retail segment in the lead. Analysts polled by Bloomberg had forecast net profit at ₹15,760 crore.
Total deposits, a key monitorable for the bank after the merger with HDFC, climbed 28% on year, but were still slower than the 62% rise in total advances.
Loan growth has largely been aided by the addition of the erstwhile HDFC's mortgages to the bank's loan book.
The bank's stock, with the highest weighting on the Nifty 50, climbed marginally to ₹1,678 apiece on the NSE. The results were announced after market hours.
Chief financial officer (CFO) Srinivasan Vaidyanathan said the bank is conscious of its need for more granular deposits. However, it is confident of stepping up deposit accruals from the new branches added recently.
«Our wholesale deposits have fallen 3.3% on quarter whereas our retail deposits have grown 2.9%. We have added 908 branches in the last 12 months and 147 branches this quarter,» Vaidyanathan said. «We have added 2.2 million liability customers in the last quarter and 7.2 million customers in the last nine months.
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