HDFC Bank (HDBK.NS), India’s biggest private lender, on Saturday posted an 18.5% jump in net profit for the fourth quarter of 2022, helped by higher top-line and healthy loan growth.
Net profit for the quarter was 122.59 billion rupees ($1.51 billion), a rise from 103.42 billion rupees in the same quarter the previous year. That outperformed analysts’ forecast of 118.33 billion rupees, Refinitiv IBES data showed.
Net interest income, the difference between interest earned and paid, jumped 24.6% to 229.88 billion rupees from 184.44 billion rupees. The core net interest margin came to 4.1% for the quarter.
HDFC’s advances for its third fiscal quarter increased by 19.5%, retail loans rose 21.4%, commercial and rural banking loans grew by 30.2% and other wholesale loans surged by 20.3%. Deposits rose 19.9%, helped by higher time deposits and savings and current account deposits.
Credit offtake in India has risen in recent months thanks to sustained demand for loans, leading to a scramble for deposits among lenders. Loans at Indian banks grew 17.4% in the two weeks to Dec. 16 from the previous year, while deposits grew 9.36%, the most recent data from the Reserve Bank of India showed in December.
HDFC Bank’s asset quality was stable from the previous quarter, with its gross non-performing assets (NPA) ratio consistent at 1.23% and net NPA ratio consistent at 0.33%. Provisions and contingencies fell slightly to 28.06 billion rupees from 29.94 billion rupees in 2022.
The bank’s credit cost ratio fell to 0.74% from 0.87% in the previous quarter and 0.94% the prior year.
($1 = 81.2800 Indian rupees)