HDFC Bank Q3 Results Review - Credit Growth Slightly Down; Stable Net Interest Margins: IDBI Capital

IDBI Capital Report

HDFC Bank Ltd.’s credit growth slightly down to 19.6% YoY versus 23.4% (Q2 FY23) led by corporate book. Asset quality remains stable as gross non-performing asset stood at 1.23% versus 1.23% QoQ led by better recoveries.

Annualised slippage ratio stood at 1.75% versus 1.5% QoQ. Restructured assets declined to 0.4% of advances versus 0.5% (QoQ) led by recoveries and write offs.

Deposits growth remains strong at 20% YoY. Net interest income grew by 9% QoQ and pre-provision operating profit grew by 9% QoQ backed by 12% QoQ growth in other income; fee income grew by 8% QoQ.

HDFC Bank's provisions declined by 13% QoQ resulted into credit cost at 0.75% versus 0.9%. Thus, profit after tax grew by 15.6% QoQ.

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