HDFC Bank gains 2%, hits new high on steady December quarter performance

Asset quality remained healthy with gross non-performing assets falling 27 bps sequentially to 0.81 per cent in Q3FY21

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HDFC Bank | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

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Steady growth in business along with steady asset quality on proforma basis bodes well for the bank, ICICI Securities said

Shares of HDFC Bank hit a new high of Rs 1,500, up 2 per cent on the BSE in Monday's early morning trade after the private sector reported steady performance for the October-December quarter (Q3FY21) with net profit increasing by 18 per cent year on year (YoY) to Rs 8,758 crore, driven by robust growth in net interest income and other income.

The bank’s net interest income (interest earned minus interest expended) grew 15 per cent YoY to Rs 16,318 crore. Other income of the lender rose upwards of 30 per cent to Rs 7,443 crore in Q3FY21, compared to Rs 6,669 crore in Q3FY20. Net interest margin improved around 10 basis points (bps) sequentially at 4.2 per cent.

Asset quality remained healthy with gross non-performing assets (NPAs) falling 27 basis points (bps) sequentially to 0.81 per cent in Q3FY21. In Q3FY20, gross NPA of the bank was 1.42 per cent. Net NPAs of the lender stood at 0.09 per cent, improving 9 bps sequentially and 38 bps year on year.

Steady growth in business along with steady asset quality on proforma basis bodes well for the bank, ICICI Securities said in a note.

At 09:36 am, HDFC Bank was trading 1.6 per cent higher at Rs 1,489 on the BSE, as compared to 0.65 per cent decline in the S&P BSE Sensex. The counter has seen huge trading volumes with a combined 6.8 million equity shares of the bank changing hands within 20 minutes of trade on the NSE and BSE.

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First Published: Mon, January 18 2021. 09:41 IST
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