HDFC Bank July-September  Profit up 11% On Year as Treasury Income Surges, Provisions Ease Sequentially

HDFC Bank Ltd. posted an 11% rise in net profit for the September quarter to ₹186.41 billion, supported by a near six-fold jump in treasury income and steady growth in interest income. Sequentially, profit rose from ₹181.55 billion in the June quarter, helped by a sharp fall in provisions.

Treasury income surged to ₹42.13 billion from ₹7.44 billion a year ago, while total other income rose 25% to ₹143.50 billion. This included ₹88.4 billion in fees and commissions, ₹15.9 billion from foreign exchange and derivatives, ₹23.9 billion in trading and mark-to-market gains, and ₹15.3 billion in miscellaneous income.

Net interest income grew 4.8% on year to ₹315.5 billion, while the core net interest margin on total assets eased slightly to 3.27% from 3.35% in the previous quarter.

Provisions rose nearly 30% on year to ₹35.00 billion but were down 76% sequentially. Operating expenses increased to ₹179.8 billion from ₹168.9 billion a year ago, with a cost-to-income ratio of 39.2%.

Total deposits rose 12.1% on year to ₹28.02 trillion as of September 30, with current and savings account deposits up 7.4% and time deposits up 14.6%. CASA ratio stood at 33.9%. Gross advances were ₹27.69 trillion, up 9.9% on year, led by growth in SME and corporate loans.

Asset quality improved, with gross NPAs at 1.24% versus 1.40% a quarter ago, and net NPAs at 0.42%. The capital adequacy ratio stood at 20%, with Tier 1 capital at 17.9%.

The bank’s slippages fell to ₹74 billion from ₹90 billion in the June quarter, while credit cost declined to 0.51%. Liquidity coverage ratio was 120% at the end of September, and cost of funds fell to 4.6%.

HDFC Bank’s branch network rose to 9,545 as of September 30, with half located in semi-urban and rural areas.