HDFC Bank Q3 FY 22 Research Tear Sheet

HDFC Bank Limited is an Indian banking and financial services company. It has its headquarter in Mumbai, Maharashtra. It is incorporated on August 1994. The products include Credit cards, Consumer banking, Commercial banking, Finance and insurance, Investment banking, Mortgage loans, Private banking, Private equity and Wealth management.  The shares are traded on BSE and NSE. As per the latest data available in 2021 the company has a total employee count of 120,093.

Key Financial Highlights

Rupees in Crores	Q3 2021	Q3 2020
Net Revenues	26,627.00	23,760.80
Net Profit	10,342.20	8,758.30
Operating Profit	16,776.00	15,186
Total Deposits	14,45,918	12,71,124
Total Advances	12,60,863	10,82,324

The Bank’s net revenues grew by 12.1% to ₹ 26,627.0 crore.

Net interest income Q3 2021 increased by 13.0% to ₹ 18,443.5 crore.

Advances up 16.5% reaching new heights driven through relationship management, digital offering and breadth of products.

Pre-provision Operating Profit (PPOP) grew by 10.5% to ₹ 16,776.0 crore.

Profit before grew 17.1% to ₹ 13,782.0 crore for Q3 2021.

Deposits

Total deposits grew by 13.8% to ₹ 1,445,918 crore for Q3 2021. CASA deposits up by 24.6% with savings account deposits at ₹ 471,029 crore and current account deposits at ₹ 210,195 crore. Time deposits increased by 5.6% to ₹ 764,693 crore. CASA deposits comprising 47.1% of total deposits as of Q3 2021.

Advances

Total advances increased by 16.5% to ₹ 1,260,863 crore. Retail loans grew by 13.3%, commercial and rural banking increased by 29.4% and corporate and other wholesale loans up by 7.5%. Overseas advances constituted 3.4% of total advances.

Cash Flow

HDFC has a huge amount of liquidity and cash at disposal with people. In the wholesale segment, the corporate has strong cash flows across sectors presenting in a fair degree of prepayments. 

HDFC Subsidiaries

HDFC Securities Limited

HDFC Bank holds a 96% stake in HCL. For the quarter HSL’s total income grew by 58% to ₹ 535.6 crore. Profit after tax increased by 58% to ₹ 258.0 crore in Q3 2021.

HDB Financial Services Limited

The Bank held a 95.0% stake in HDBFSL. HDBFSL’s net revenue grew 15% to 1,981.6 crores. . Profit after tax for the quarter grew ₹ 304.1 crores. For Q3 2021, HDBFSL had 1,328 branches across 965 cities / towns.

Conference Call Highlights:

Management Updates

The capital adequacy ratio is at 19.5%, CET1 at 17.1%.

9.5 lakh card issuances.

Credit cards print for the bank grew 22% y-o-y and debit card print has grown 14% y-o-y.

The bank’s acquiring market share stands at 47% roughly with a 19% share in terminals processing.

Business Updates

The bank has opened 93 branches in the quarter, 171 branches year-to-date nine month period.

HDFC on-board little more than 5,000 people in the quarter, 14,300-plus people during the nine month period.

Streamlined modern customer experience hub and allowed access to content across channels and devices.