HDFC Bank Limited (NYSE:HDB) Q3 2024 Earnings Call Transcript January 16, 2023 7:30 AM ET

Company Participants

Srinivasan Vaidyanathan - Chief Financial Officer

Conference Call Participants

Mahrukh Adajania - Nuvama

Pranav Gundlapalle - Sanford

Suresh Ganapathy - Macquarie Research

Rahul Jain - Goldman Sachs

Kunal Shah - Citi Group

Chintan Joshi - Bernstein

Nitin Aggarwal - Motilal Oswal

Abhishek Murarka - HSBC

Anand Bhavnani - White Oak Capital

Operator

Ladies and gentlemen, good day, and welcome to HDFC Bank Limited's Q3 FY '24 Earnings Conference Call on the financial results presented by the management of HDFC Bank Limited. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Srinivasan Vaidyanathan, Chief Financial Officer, HDFC Bank. Thank you, and over to you, sir.

Srinivasan Vaidyanathan

Okay. Thank you, Nirav. Good evening, and a warm welcome to all the participants. There is an earnings presentation deck published on our website. Please refer to it as appropriate. As you get to it, in the meantime, let's cover a brief on the macroeconomic environment that operated during the quarter before we review the earnings. We continued to see healthy domestic activity -- economic activity driven by robust common spending, primarily in capital expenditure, improvement in domestic manufacturing and resilient services sector performance. As you know, the GST collections grew 13% year-on-year.

Manufacturing and services PMI continued to remain in the expansionary zone and the consumption side improved consumer demand driven by sector spending resulted in robust growth across various sectors. Our [indiscernible] rate unchanged at 6.5% and retained its stance and changed at withdrawal of accommodation and modestly reduced its inflation forecast in the second half of the year. As we look ahead, the economic environment is poised for strong growth. India's year-on-year GDP growth for financial year '24 is estimated at about 7%. And for financial year '25, GDP growth rate is expected to be around 6.5%, continuing to be one of the fastest-growing major economies in the world.

Let's go through the key factors of the bank's growth journey. Advances can be referred to on Page 7 and 8. Gross advances are at INR 24.7 trillion as of 31st December, reflecting the sequential momentum of INR 1.1 trillion or 4.9%. Retail advances grew 3.3% quarter-on-quarter, primarily driven by strong performance in the mortgage business.

Retail mortgage disbursements of INR 460 billion during the quarter grew 18% over prior year. In the CRB business, it continued its strong momentum, registering a quarter-on-quarter growth of 6.7%. Wholesale segment, excluding non-individual loans of HDFC grew 1.9% sequentially. Non-individual loans of HDFC aggregated to INR 0.99 trillion compared INR 1.03 trillion as of last quarter end.