HDB - Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, good evening, and welcome to HDFC Bank Limited's Q3 FY'22 Earnings Conference Call on the financial results presented by the management of HDFC Bank.

As a reminder, all participants' lines will be in a listen-only mode and there will be an opportunity for you to ask questions after the brief commentary by the management. [Operator Instructions] Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Srinivasan Vaidyanathan, Chief Financial Officer, HDFC Bank. to over and you, you, sir. Thank

Srinivasan Vaidyanathan

and evening a warm participants. the all to welcome Good

with and growth the we start policy. to First environment the from and were tailwinds operated the quarter conducive good for with monetary fiscal in that policies

the up-to-date know getting indicators or stance policy about PMI, the about like cetera, et and better bills rate conditions. collections, CPI e-way You et QX, the cetera the activity all in GST but liquidity also RBI

With the market was were period us in nine than Bank's Now little past months during the added We've opportunity. XX in XXX enablers INR backdrop, XXX%. three IPOs. one into in in strategy. in our branches to we INRX.XX period. sheet we our equity and capital investments in sheet for is XXX for quarter. almost derisking over XX.X%. up total that, we during that resilient. at XX,XXX-plus go Private lakh quarter. crores, the Indian crores level a in CETX saw and as opened LCR capitalizing contingent INRXX,XXX Two, XX the as the To XX.X%, the more the positioning Balance through raising branches delve get X.XX%, positioning of approximately COVID The picking Liquidity the at the people growth. mandated ratio for robust the in give key provisions the the average issuance balance have months bond is raise also quarter at One, reflected The five balance the in for been the eight is of high We people strong financials. Bank nine at has floating let's that period. top the fund capital crores remains for themes ranking arrangers months sheet bond X,XXX GNP maintained quarter, context, INRXX,XXX adequacy ratio instance, is so at are stronger, quarter, market branches aggregating for continues executing the quarter for market. year-to-date onboarded additional its

XX people onboarded get ahead have as about the the XX,XXX a the COVID on accelerates past is to digital. over productivity during on the period the months economy growing people further. There impetus We curve

taken ensure our modern have customers great necessary We with introduced to channel whatever choose to access experience Key streamlined across allowing like us. devices steps to experience channels and will consistent hub and they have a content initiatives be the in bank customer soon.

committed experience We offering. are customers our enhancing payment digital to revamped through also continuously a fully the for

ensure strengthen have to We even and steps scalable, taken robust, multiple further. secured setup to technology

has XX,XXX has mobile our customers on capacity Some banking banking for key been for been Bank and tripled, net users migrated backup UPI initiatives and significant has rely a and to is exponential to implementation network next upgrades with transactions. application, in significant of infrastructure of level centers recovery and state-of-the-art growth automation facilities. digital Bangalore active-active our Mumbai support key disaster as digital four needs. doubled step, banking moving DR security Bank to concurrently, manage in for The capacity to HA/DR include setup data most of The and the and channels

XX website, close capability or digital the to instance data of a underwriting. digital through In million XXX retail our we per month. received customers scorecards new take rich unique traditional Our on averaging coupled for go is total behavior, visits customers' automated loans on million with QX, XX% wherein product,

new acquiring vis-a-vis visits to As footfalls. new of to mobile times sector on mobile setting public-private our come. XX% for Three, simplicity in high, more per broad analysis, the relationship on our the close XX% of basing with and the device preparing deepening had we visits XX% through customers, with were to indicating liability sales, relationship website

distributing high. the the grown has issued economy from lakh for the cards, we have XX% during ever million over partnership customer further, grown feet our In on and QX, the card street. is improvement in two for our period increased new to we last leadership debit Credit certain issuances. print growth lines and issuance a X.X new setting cards. the XX% both X.X economy same this nine X.X consumption opportunity The of liability This late of large has achieved points so growth scale lakh perspective. PSE liability products. scale XX% in with new months when business exhibiting or card we leveraging print million access In we MOUs rural Bank recommenced engagement among year. further relationships, up reflects similar with have opened issuance highest partner the areas and year-on-year Since financial other for year-on-year. banks opens semi-urban about year, places August, distribution payment Four, cards growth quarter, digitizing to a we market far and During new period spend signed our of XX.X

has scaled growth EMI, points. such segmented one lakh-plus segments further as through emerging customers consumer sales and Consumer easy preferred marketing. our finance active have durables We targeting business distribution

and terminals participated offering The share XX% million per training XXX with stands SURU been share gaining digital has sourcing acquiring a some from services easy products. offering focusing financing, at volumes enhanced in The to growth. December value-added Factoring, financing, Five, presenting of growth. cash strong in customers through options. to segment, is is sectors across over transactions SURU segments. opportunity locations. approximately continue year-on-year of month. in financing asset acceptance to fair The we XX%. Bank Trade million with has the invoice generate EMI relationship export XX% Over merchant are continued solutions. across X flows scaling segment-specific growth have Bank's for momentum to new new market degree points processing products We X.XX In Bank with and various of as provide about locations a Bank million the driven of are investing an in offering be reach into import of credit high, breadth XX% prepayments. merchant and corporates wholesale of management,

also the to X.X% the year prior making X.X% prior largest player MNC progress are over and ambition We over by our Corporate be wholesale in with grew in banking space. segment other loans and quarter.

stride quarter. continued back robust seeing year-on-year a the quarter. and This banking is On during growth asset a sequential rural the growth pickup continued economic front, during its the and witnessing growth and of of gains. retail X.X% businesses XX.X%. QX and well, assets as growth disbursals incremental observed of of on momentum growth X.X% sequential share strong Commercial this the reflecting year-on-year of market underlying QX saw been has XX.X%, in robust This activity

consistent Now by let's interest driven start XX.X%. deposit an at the a lending net is and interest also for income by to COVID quarter. similar This is INRXX,XXX of grew with underlying registered was year-on-year Net at from essentially income net higher in net for X.X%. Net is is crores is the around unsecured core growth RWA, of our revenues of gravitating sequential income and period. which XX% in revenues, of XX% range previous of the segments X%. revenues. interest reflective X.X%. growth margin towards which rated at of This the XX.X% Net by the net represented XX.X% advances grew to The interest shift of quarter, growth growth in quarter ratio

up other year due and card to was two-thirds Moving of payment constitutes products, and at quarter. X.X% over cash the INRX,XXX to of fees details INRX,XXX customer approach year-on-year lending at XX.X% payment by versus well commission other income. Fees, preferences. compared and was products fees about compared Fees fees, to the cautious XX% of by Retail wholesale degrew prior XX% approximately X% income prior lower fees on constitutes as crores, of on reflective a advances, versus commission crores card-based up income on as to products, grew income, X.X% X% prior loan limit is grew and prior and quarter. and excluding and which to year-on-year year constituting

positions product ANR to However, propensity and revolver customer increases. card out us come future sales, card and interchange robustly, which loans for the and for use growth have

quarter during crores. offered and at addition, compared was crores incentivize spreads. to year, prior waivers pickup customer for income INRXXX year crores engagement. and crores INRX,XXX Trading fee festive the derivatives and FX to certain reflecting by activities prior the XX% at was period, in INRX,XXX prior In higher we INRXXX at was quarter, income was

Some of from income and miscellaneous of our were subsidiaries. line accounts crores from investments with the gains recoveries dividends strategy. monetized written-off INRX,XXX Other includes in from

the bringing XX,XXX. year, of X,XXX Now XXX year. total at moving Since INRX,XXX deposit quarter machines, X,XXX. Year-on-year, we to XX.X% the cash crores, taking on increase we to previous and added to total branches, for expenses an withdrawal branches added ATM over last the

correspondents service XX%, XX,XXX the X,XXX business which We level. similar managed ratio common about was same is higher year. for -- at over is the quarter time the compared X,XXX have last to slightly to by prior-year centers, by Cost-income which

in increase sales spend. stepped up incremental mentioned, further, investments retail previously driven and we technology, As are by discretionary levels segments further and spend other activities volumes, and to promotional the anticipate pick up

crores Net slippage is ratio net crores X.XX% about pertinent forma GNPA at X.XX% quarter. slippages X.XX% year. a as quality. of points basis The X.X% to borrowers as annualized other at basis X.XX% included X.X%. are NPA. of Moving facility seasonally quarter NPA INRX,XXX Preceding pro quarter one in about INRX,XXX or of to prior standard. onto contributed advances asset as GNPA current X.XX% about XX ratio that prior and XX NPA in of at has points These for in was in approximately gross note Agri prior us compared by was annual at the was It's rate. X.X%, the the are ratio ratio of against advances. to on quarter the basis in

approximately approximately one included of During X about the in categories the the were approximately crores, or about points. points. quarter upgrades in basis above. the recoveries INRX,XXX crores INRXXX were INRX,XXX Sale XX in of points and crores, quarter, basis NPA, basis XX Write-offs quarter

rate demand quality and the enabler at at of and and end looking demand resolution with secured overall only to been at comfortable. two-thirds not level, the for scores bounce XXX accounts, their The bounce and continued are uncertainty few the the other cases, most back restructuring about then check now good XX% to as borrowers, levels. early our COVID to portion, give customers bounce framework basis overall payments initial showing borrower To December The better of of in to on portfolio an has is The under some included are XX% than things, good feel illustrates some The the resume quality. better restructuring score, improvement in more XXX. are COVID-XX level aggregate here. back encouraging is pre-COVID approximately products XX stands impact and the to same suggest for the have of but check facilities with bounce customers points Similarly, resolution and we collateral This are is in non-resolution at of and to Further, and rate December other basis levels salaried the predominant for continues rates these quarters. The pre-COVID minimal trends. on. the levels, Now points. which that of Bank. restructuring are is most advances customers not RBI good resolution retail the the amongst over shows at restructured unsecured includes restructured, but CIBIL indicators in of XX% better. pre-pandemic last improvement. most January which the pushing marginally Of products across approximately so XX%, CIBIL also of improve tide color

cases. Total XX provisions included crores head loss GNPA are during integrated. provisions was the current be and There as at As contingent bank quarter, collateral Total XXX% mentioned any points quarter write-offs, and the provision held coverage floating at reported points provisions approximately INRX,XXX basis is Total XX mentioned provisions at general of additional to basis the that. remained on At the about INRX,XXX our as of last comprising INRX,XXX nonperforming floating specific crores given core loans prior crores were contingents of technical INRX,XXX the towards and were security during are to in quarter. provisions against contingent against ratio general provision crores, at INRX,XXX quarter. our it specific books several for in impact approximately specific previously, of restructuring current the provisions talked in provisions INRXXX ratio loan and addition XX%. the crores. INRX,XXX quarter loans. were end gross We fully crores, INRX,XXX The were quarter. prior of were This crores crores. quarter Bank's The no provisions office can

another Looking floating, provisions at of lens, of general X.XX% quarter end. contingent gross December as were through and advances

for retail is entire which over coming Retail total points, quarter at to XX.X% crores CASA as crores XX% X.X%. prior the Time year. XX.X% deposits basis XXX by grew an prior of on Prior and grew about an This and crores total XX constituted credit XX% since specific in the contingent XXX and prior Total of approximately deposits quarter up balance of over prior deposits ratio, Total INRXX,XXX includes a basis for basis by INRXX,XXX quarter is points, in at INRXXX,XXX over was the prior comprised color and points recorded contributed year. segment advances over some Now for the Recoveries, We'll prior sheet annualized quarter at the provision XX.X% at miscellaneous Net income grew amount was basis items. against quarter cost that to The basis of XX in year-on-year, addition a in INRX,XX,XXX X.X% December year-on-year. Time gross approximately quarter against ending to the credit is crores quarter crores current deposits deposit and prior cost points impact crores. end. crores, was basis growth XX year. quarter. amounting for X.X% of at at XX forma ratio, quarter prior points basis X.X% approximately quarter account loan robust is advances year XX.X% XXX core of credit INRXX,XX,XXX which for XX give cost pro basis CASA deposits grew deposits points. the points. by are crores, segment year. INRX,XX,XXX decreased deposits This crores, points previous ratios. year. wholesale account to on profit registered for deposits INRXX,XX,XXX and the by year. year. INRX,XX,XXX Time of of INRX,XX,XXX since the were of crores Total during you of prior is growth the loss crores savings with INRX,XX,XXX deposits basis addition XX sequentially points INRXX,XXX since basis year. by last at some the the at as deposits

total, guidelines, Moving at CAPAD, XX.X%; beginning, to Basel XX.X%, adequacy capital I to on which X which covered at previously. XX.X%, III covered total the CET I at according Tier

book environment. based with COVID new on continues place as Conservative getting implemented on book in on year-on-year. during loan QX, on highlights course was HCBFSL, of basis. reviewed XX external to picked Now due December up in XX% a and secured The IndAS at which this some acquisition, growing to will quarter-on-quarter be loans. be investments total total loan will The INRXX,XXX X% and crores on comprising in policies stood the customer XX% on be underwriting have

growth prior-year revenues the For was crores loss the quarter INRXXX overlays crores, profit for INRX,XXX after the including a INRXXX INRXX quarter, and net the year. INRXXX for crores, contingencies of of INRXXX XX%. tax crores quarter were for after crores the HDBFSL's Profit INRX,XXX crores were of at tax quarter. crores Provisions compared prior quarter for to of against management for a sequential and a

collateralized. about a XX%. of was of is of which X.XX%, improved and Stage from flat and XXX%, X December waves stood with XX% a quarter. X Company at X a Total of secured, Stage December X.X%. Tier As with is of funded opening at ratio coverage any XX% end at levels, XX% the funds markets XX.X%. coverage as carrying is customer book, HDB to capital strong here is the Stage unsecured, end, of the provision sequential XX.X% from further up ratio and is book is had gross growth poised fully With accessibility impact of at Liquidity pre-COVID COVID. provision of and healthy we subject of well a believe cost near X for to adequacy coverage

few to XXX network profit Securities HSL, with wide on basis. revenue IndAS in increase branches QX INRXXX a year-on-year on in Net HDFC with cities XX% after of crores Limited, of and Now country words in tax crores. year-on-year. the presence of to increase XXX again its an HSL an has INRXXX of total as towns an shown pandemic XX% has over in and of are the base HSL's of digital counters capital. effects customers December, year. opening sheet, have a we months million increase significant in journeys prior XX of broad been of across client X.X successfully. reasonably past There XX% summary, account In overall P&L running balance over increase the overcome end human

While is it to the our past waves. the effect are latest watch the not few we of clear, through next which we'll where navigating to over this, from turns, out of confident see wave learnings weeks applying have COVID

Our after X%, leveraging our INRXXX.X. quarter the With INRXX.X, share product, for value on up earnings XX%, please. open to reflect the over of and growth operator increased quarter by asset accelerating book request per increased the thank delivering may return I of questions people, With deposit per that, XX%, very by advances much. in INRXX.X share in on you technology. is of quarter growth distribution The to profit tax XX%, growth results that,

Operator

Please go will session. gentlemen, Adajania the the of ahead. begin The question-and-answer line from is question form Capital. much. Ladies we Thank now you [Operator first Instructions] very Mahrukh Elara and

Mahrukh Adajania

credit congratulations. cost. is Hello, on My question first

after years. has including credit quarters, many So total around if come contingencies three the below XXX cost,

we see few the to wave, likely assuming further there the that normal is Now over new COVID are quarters? no that is next

Srinivasan Vaidyanathan

Mahrukh, Hope can… thank that you.

Operator

you Excuse phone, sir. I'm please speak me, to to sorry so I May interrupt. the to request sir. closer

clearly is audio not Your audible.

Srinivasan Vaidyanathan

Yes, chair, for cycle moved you. Yes, but a -- where are that. our my valid and retail question a okay. been coming See, we point a view, right. All benign. I have COVID have it's asking Thanks Okay. of appropriate. Mahrukh, thank Yes, been from from bookings

that when performance, which point recent account. profile highly of So, a is vintage very is norm, recent we up period would through Second, cycle, to now starting right? look over a wholesale say whether NPA, view, This begin the through our that's terms from how at you look a shown, of it. this come rated of vintages, retail X.XX%. get we X.XX%, started, have But look the right? years, bounce to look around entry-level to you And two we both a to need have to norm? at have the this in can cost basis credit cycle to few I anytime at normally X.XX%, points and not and right? you a context, up the now And customer are is you how opened at new XX, at and you far cycle. and if they scores are XX superior new the ago, is they down, a The superior, look over quarters

total X.X of past, cost Current kind total the have come. is a range, have call the up come that's as credit that's credit, at a and given cost But can down thereabout, averaged particular that at a such. it we XX. we provisions up outlook So which X.X, with. small not view, have go in range well, From it, it point of quarter where about within the can of

we way credit at up range of operating, a opening little call if that, to kind kind So is, range, that's -- at are we right? last the basis experimenting the broad It look things. are XXX lower. policy. it in lower about calls points, back pre-COVID, costs that So calls where the XXX than you it that's for And of which think for go few a a a Then right? it we to in

and is a always between pressure reaction that that right? that and There's So, there the happen. in, business the comes pull credits policy the

basis come. we this XX a basis So I a total wouldn't the of credit of cost cost time to current good specific the or long corporate losses that But points, are. is that take total XX or as standard the points XX for

Mahrukh Adajania

And my question next fees. on is

mean, there can quarters? payment that mention one-offs fair and card-related which did promotional one-off were expenses, color, a could so we -- won't there get You or was you give if recur big that declined, trajectory know but few on credit next fees the in more or we outlook any client the I any or

Srinivasan Vaidyanathan

INRX,XXX-odd have Again, X%, a well so are you. about question. so. that done pre-COVID think we before confirmed quick if we we percent done reported you In fees is Yes. crores that right? it the Thank good the See, past, and forth, Okay. XX-odd have or we very

every fee business have places, have payment right? right? mid- to it We other can think what as but part this products happen low. think engagement, I settle, franchise, to, it few the set recur somewhere a So quarter, about we things every excluding you products. about can high-teens fees So of customer programs incentivize thing Payment at payment offered been need the if quarter, that's right? of way sort the So it on on we waivers the the the about. the where depending think running doesn't to that's which about one alluded growing are think One, to thing that's to to unusually settled and where again, There quarter, XX%. about to of product, consistently it kind And is certain right? run, one

late a from are even customers right, of point cards of on point the think view, is terms customer from in to that behavior paying very credit how a view, -- of much payment I Second, I from alluded plan.

there reflected too. is that So

point context that, cautious But now, is we But business one come, of review limits, on so we and there policy taken on as right? fees coming view, to wave credit So from right? of limit, pre-pandemic little required in credit terms the advances, payment recently, terms cards the definitely So used and turn it a think broader view, right? level. cycle to if come we the of when I'm overall, so to right? has right? it's speak a will utilization that, of cash to policy advances the policy you take that to payment about what usual more that from lower end, So what credit some itself, of products, think from then because as customers, about that getting point over low, in until credit impact. cash are subject like we a been of also does Customers through. tight at So that on, were opportunity limit, another a is used The talking through, we've has the get the right? was customers the there is is a on and And doesn't the see particularly place, a late the right? aspect So line that that the updated the lower some is is we you the on is the

pre-pandemic are So yield get we while spend with the level. to But line much and a to quite levels on that. more go interchange the to the utilization get the is XX%, back has got good up good and credit robust

that's one are the who thing people spending. So on

happening is levels the on right? So pre-COVID all of this, X.X in of X.X terms if then the think to That you what to And revolver this size, saying the space. sort of all cost. they is revolving the is about are

much So get there to room side. revolver people is more into for those

If also right, of to part fees balance, some that what that's of what the perspective another is liability is a right? I'll that. on which typically the which Xx, card Card both business, now, good book relationships is quality customers think an the that customers aggregate at the x have strong liquidity. right? of is connected card, cards almost as loans to balances are is Deposit So pre-COVID, that level, of the customers card liability ANR customers the use x Xx. this with the know, level. you is were advance, on us, have part the our liability and amount the the most right, contributed Right We of are Xx. of come of you card aggregate today, relationships. it At about an we give of on muted,

sitting a with in good liability customers see we deposits amount and of that. balances are So,

So, the -- this huge to pick now disposal come the is on cash has starting is of with now liquidity it with down, and economy amount growth. people, at up

cards this long-term right? So is back of the a should of mid-teens come that expect past, reversion, we from a expected but And view. so what cycle to the to growth have in high-teens point a we part view, said point from what that's use to of one is

Mahrukh Adajania

that long But many how -- in reach term? to your assessment, how quarters would take it

Srinivasan Vaidyanathan

loan the exact in what what on And go tends the the is that lines with environment, the that That is the predict it don't time is will it typically, it's But model that thing want you as expect for mimic PPOP kind have the growth to and is. That's the very it depends maturity I growth. -- quarters, along. a to loan applies about activity combination or to be two, Could is right? we more it get to where see performed, headline. three, the both operate what a environment that historically of we that. have would is of the the most to economic of customer See, as the behavior back, get similarly, that operate. to I shown, right, it whether growth should is what PPOP, think exactly venture loan -- there's tell where no you historically be the we That is similar if what the similar, less because takes same to four

Operator

line from ahead. Mehta of question Please go Alpesh the next from Securities. is IIFL The

Alpesh Mehta

around The first to question we works to is be accounts, the -- XX,XXX, What works the is restructured be around about loans. in XX,XXX. that to see the X.XX notes reconciliation that between on the out

So numbers? how do reconcile you these both

Srinivasan Vaidyanathan

see Okay. When -- what you said you

Alpesh Mehta

to notes the there to out RX plus see works crores, number. I INRXX,XXX be around total would number When a be accounts,

So the and is double accounts XX, to both that. between put RX XXX. together is counting RX around also around mentions crores Notes or that something like INRX,XXX

around our So around shows crores, what's it's to is INRXX,XXX INRXX,XXX of gap out so INRX,XXX crores the a crores? the that works around -- number that net -- this whereas comment be

Srinivasan Vaidyanathan

and Okay. on something what's it Got your question. signed it. template, template right? fill we Somebody Got So up based that's the put the the different. and is See, right? up template, there,

in you what whenever And there. September, so. those impact. good means point you Last add That it crores, was time, This we RX That right? The RX there the we in is. points right? the was or originally is as it What And eliminate see currently, it double what granted when reported was is at several that September. XX,XXX, if And has grant INRXX,XXX number? in up, right, granted count, INRX.XX you that's a crores right? INRXX,XXX we like is raised, crores, is restructuring and you last points what view so XX,XXX, that say

adjustments. of has INRXXX about half crores, moved various INRXX,XXX the that crores of of is to to moment, the half So and it of a they crores INRXX,XXX net NPA, recoveries called movement, it that first,

So is crores, before number That's that's September, adjustment September whatever of happened originally you right, crores, and what September of of have as to that was as granted, a is was NPA, and INRXX,XXX crores what in INRXX,XXX. to what of we have various September. -- what September outstanding time, that part between to a right. we some recoveries I of is moved, to which up around INRXX,XXX from think reported happened now picked between in things INRXX,XXX it's what the happened net the but December, part of what But speak

Alpesh Mehta

Okay.

just you counting, So Srini, correct plus to notes I the amount in there of at the RX which, I'm accounts. me around and RX look If NPLs the that INRXX,XXX notes of the the September accounts was to minus amount RX repaid disclosure, mentioned as crores, right, the if per the were wrong. double

was September per Whereas INRXX,XXX around crores. INRXX,XXX as was So in that disclosure number crores. our

that between as September your crores, and between the the my So which of what's result understanding INRX,XXX is date, the amount was difference reported correct?

Srinivasan Vaidyanathan

other and date. until recoveries reporting that came other various the Correct, things

Alpesh Mehta

the similar right a is of and and And RX reported NPLs amount have situation Okay. you not the now repaid out RX. wherein also,

for as around account, the crores, et it recovery, around everything repayment, and NPLs, INRXX,XXX to the be -- after the the So could it's but crores. notes INRXX,XXX cetera,

Srinivasan Vaidyanathan

crores This originally outstanding. INRXX,XXX quarter, mandated, again right, something reflecting or calls INRXX,XXX in was right? -- INRXX,XXX is RX crores notes account for to is granted, -- simply the reporting crores the calls not only which is notes. as it outstanding, for

whatever to the I the mandated when we crores. talked But what that note, in So showed. that's and INRXX,XXX was show both is X.XX, I gave

Alpesh Mehta

on the This sheet the the is RX is are balance restructuring whatever mentioning... that is outstanding that RX -- number you

Srinivasan Vaidyanathan

correct. is That

Alpesh Mehta

Okay.

this situation a that time. period But at be that of given you question give -- gross on that tenure one related next your any a XX just second shifting comments group You can basis comment the will some point book? one points The slip to XX, of qualitative can be over of this of year. mentioned in to the would XX%, as almost XX% NPL

for So points clarify NPL are this it -- I talking points XX when to then about out slip quarter just X.XX, number. that only of of basis so that we XX, tenure was category. example, book around particular of wanted X.XX, the can the XX over basis into or

Srinivasan Vaidyanathan

on to the I score, it, XX comes right? way, on based there about of point XX% one be so good profile, comfortable, we and CIBIL the or on CIBIL based have comfortable points can about, we the these where any quite at or CIBIL XX, about XX seen is By what right? said has alluded that on restructuring we So this generally, years if run feel comfortable person And a right? Then can basis Okay. say year watch, And no are have to score, what of we from good two balance, feel is I now view, said again, of range, over point example, particular tolerable customer up go. years, restructuring the sign right? say, there to in that or various we unsecured where got that where our very was something. particular our secured, fully so, analysis, the with, And time, up portion, XXX it and for than for score gave we keep three kind salaried which analytics on within experience when that's granted, left This collateralized more which XX% call two to the then for feel customers one years roughly or right? right, loan a on we two-thirds with are about so based based

Alpesh Mehta

Okay.

almost over your X.XX%. basis is of Is number points slip just the correct again, to XX% here of again, can book XX, as now? per XX clarifying That So XX% that analytics.

book to So the you can it's analytics your that based XX% of or customer on data keep the around that X% have? whatever

Srinivasan Vaidyanathan

XX to points into I No, the XX, various time want don't basis venture for extrapolating periods. into

Alpesh Mehta

Got Yes, got it. it.

Okay.

related now at indicated growth. PSU the the credit just x we always are in is segment that. may the But the that than banks private The at be number. but system system had multiple level consolidation growth x the growing Historically, guide I system within faster we because to about second credit when question of growing band, sector an to the as larger see the the percent, used much of

very almost share? developed maintain x two products, of loan of is growing How three at your growth? book at our fast quite gain and last the And rate years in specific have one comments around growing and second rural banking, opportunities lastly, payment wholesale one much and over you about commercial grown the see as bit aggressively is have Secondly, faster that to credit can also Do we talk larger grow better that we some that do still and system. than used And are past a or significantly market we the higher of the percentage peers to our we this it Y-o-Y. XX% since overall capabilities corporate share a products, on banking, of book. is a the

questions. So these are my

Srinivasan Vaidyanathan

question, long and be possible. I'll short to as but A crisp try

the about has it one over longer the not how one one loan consistent, you market quarter, at COVID If consistently two at period. we than the growth is growing share, is rather a the one during look And in that loan look to including time, to thing right, quarters, and are has period think growing, but of our growth one period.

that's growth call includes longer So, XX%, We've grown COVID of than can growth example, rate for to high-teens in two you period right? a 'XX a that had take at growth. a -- it, period. two-year call sure. the And longer at essentially looking of type five-year that, that double, that period or like back we a kind period, similarly, That's for of And about and IP over too. plus can the go it, little more But something you between XXXX growth, what for again, right, consistency time.

basis, XX% the so So happened. also one evaluate current share evaluate have on basis, we a right, we an believe to has more have based incremental incremental has on than an circumstances, what in We basis, an on one or what incremental right, has to grown. based from of

wholesale And categories past and wholesale we customers think is in point time, about and right? focus Yes, highly crores we in wholesale. we on the again, you a them we of of touched terms see very If the it, products, upon about that's lot year-on-year INRX,XX,XXX see grow of in the seven-odd prepayments support or crores commercial did good retail. happening, good rural percent in demand. in XX amounts XX months, We rated. we what were some with a to appropriate at of the And months, a the there now INRX,XX,XXX for wholesale,

that segment, of more country's commercial that the segment. will on and we fast a GDP want the we opportunity -- of rural, that About And participate right, that very segment, in and enormous vehemently to On one-third that in to by and group growing. continue bounce kind is contributed one.

we On in or rightfully are so. from is the view, a back, the that are we subdued, and were policy so we retail, at what sequential growth X.X% of seeing point

over our terms a mean quarter capture we various to so unsecured look of a two of in time. rural growth and secured, So and is summary, what the commercial is, portfolio continue and period to that's must doesn't at growth, And and quarters it's coming now one consistency of retail, or net-net, back share. it product spectrums, balanced across across across wholesale, about the again, in groups. in the will I market customer same how which And growth we establish

Operator

the question Goldman Akriti Sachs. is line The next of from from Kakkar

Unidentified Analyst

Good A Srini. questions. here. couple evening. Hi, Rahul thanks. of Yes,

First one, asset on quality bit. the

restructuring that Just did new was wanted quarter? this to there in confirm, any we

Srinivasan Vaidyanathan

-- of the part in things INRXXX minus or crores No, a was a then plus happened. granted, was you pipeline but crores, new other But and that restructuring, that the mix was about that came I payment, no was INRXXX but that and granted pipeline gave that is change a whatever is the so in new of not through which new crores application whatever net INRXXX the came. paydowns that

X.XX%. is it INRXX,XXX at crores, net-net, So

Unidentified Analyst

Understood.

on the is question second and The slippages credit costs.

I think asked Mahrukh also question. this

to the and pandemic impact, least new XX three come that one you from assuming think at the then points no up how plan few are do in over be buffer do On to we of cost and pumping build Shall see in credit context, lowest through? here? basis slippages more quarters? also the continue more the a last And also you next normal in PCR could floating the quarters, this

Srinivasan Vaidyanathan

A good question.

time in Mahrukh recent of another point forecast can I I to terms aspect as touched to also it, a you one COVID the X.X%, X.X% period, historical upon You operated of don't we say thing. how outlook as touched but of But kind or in bank, at, said give to upon. particular what we that look our

years revert the XX, the a to what XX-month should should XX booked the when what we mean is have our book on an Retail quality. good are loans. working very call months or, new up on XX, about And and bank, across across existing book XX -- before reversion things, you including of current go But operated, again, reflective we type means booked it several including average two XX% mean previously segments, type If card little various period, what is of the a So time, quality. segments, basis that retail it, to call they XXX lab two-thirds right? at it, right, period that vintages, over of personal pre-COVID that the loan we had And to you vintages it, the of points, to innovation have typically COVID COVID bank, was right? of points. that look bank, about, recent existing currently somewhere we call there basis or because basis to happen opening we various it, provisions to to yes, quarter was towards book, of -- XX% there, of is contingent kind a points XXX good -- very a

bank progress So models towards see be alternative now data scored scoring to from and efficiently the through new is passed making together. the using innovation could how lab as to our the muster on market

about it on the quarter, non current a So but yes, the I what to you ask based and project of. wouldn't it pre-COVID you is think kind if from that's

uncertainty What bring. sheet you balance of starting your way the can contingent the Today, about on, for gross right, the 'XX several more the that point the before of was less example, for done, makes goes you At look second INRX,XXX right? that of points, so, the resilient of onset See, provisions back our any June countercyclical at so the on if at basis it much it and whichever right? were provisions provisions crores. pandemic takes or right? or the COVID it, including provisions time, when XX and provisions, than basis is we it's or crores, provision, more contingent that So quarters it initiated it's cases, right? build than aspect of So our -- XX contingent short built does of up, the points much question advances floating building look INRX,XXX buildup of

to. so as And I in execution do? our including several the lab good experiments It's, such of what does our growth, alluded course, on resiliency making for line front

take type it how and We this it it no quarter-to-quarter. quarter should We comes preplanned we evaluate There as runs. So evaluate. is that's of about. a think how in

Unidentified Analyst

two Got more just it. questions. Srini,

product payment The card other on question was or credit profitability. the the

pressure. out it thoughts this about why and how also any some points remunerative thinking, would product we what could structural the should what quarter. witness that while of when regulators to remain the think a muted You you the still component laid think as are But about the are profitability was few components which

You et pointed late the fee the of waiver, payment about fee cetera, sort down. coming

So two-year from perspective? to one- about a how think should we more

Srinivasan Vaidyanathan

Good question, right.

or spend growth, regulatory We right. will the from But or XX% of has the that first any view, and about quite the see point the buoyancy other aspect of come to that spend overall up things come that. a will an to is so year-on-year picked card

a line I over that So the due up, is credit has of the down credit down. to coming period something spend that the happened. line COVID the utilization as go the spend goes said, the up, came And as next thing utilization

still at of it is the pre-pandemic Now X.X level. up, line utilization go about but credit to needs

-- with so constraint regulatory of the goes come that the penal there moves also should happen, fee. fees the start along on you not type as also incentive the right? [Indiscernible], to from to up. just type of cost to Any other about or is the volumes need can And fees fees, to view, fee need and will you with that right? right? that up, think various that on a So point think fees about fees to and it kind revolving go So origination routine a of the it type forth of means that or so cost, be and of gets charging then those are fees And loan comes

discretionary costs model at are P&L cost such whatever. balance the For see accordingly, right? of But model. across are to terms linkages. there You fees all there a to structural right? a certain from And that has why, the and at One there from call right, out? There's on aggregate what intact kind earn what out, right? it the lines it But They cost structural bottom, certain goes change. cashback, a only some also call out, one supports, isolation no on what to sales that these has that change, were it the if a across go goes be linkages should irrespective of has the is spend there cannot between And look what the be of expenses, are that example, one all fees remain look you you the the P&L, it of to as marketing promotion, to structural promotion. an one the then type is and have the in sense, rewards, change, call what profitability can top

Unidentified Analyst

strategy. digital the question Last

announced two You've partnership with entities. the a

how about you of [Indiscernible] view? with strategy customers, acquire That sort that your this also can looking just And So the does of and partnership about? to is the digital talk this front tool feed entities or and the from operating retain you're question. leverage last

Srinivasan Vaidyanathan

customer things that, is in think the it three I how fits and to acquisition, to like we about you and kind the key everywhere a servicing, the know look Maybe three cost-income can take of all getting whether and relationship this of at a customer is forth. question it is minutes in see One in talked call more and you with right, is a activity, time it, one it describe, the one about of is I'll and what thinking. different about you're and bank, management. two, right? In third second terms or like so on we the -- it's how think so and partnerships so

is The on engages right? partnership on fintech the sort. is we of front get call we what now for we talking side, a time have And other kind the relationship DSA developed We don't acquisition on this of all feet is terms have is partnership several on model, model. the another with in So, years gave partnership ago a have based the a that customer And million so have right? that and that partnerships which one we we branch, street customer model, continuum that, or of then, that over model, about physical now have fintechs last starts type where, how the there to a that digital are end a on channels think model, three And the model a right? on have acquisition, you virtual X.X we marketing That's ingredient in key every -- analytics. of And we comes regarding on I some based any relationship. customers. other it, product about, liability the inflow a of work we various

of that. better cost in a than model, at acquisition brings how relationships a that that's or end gravitate a thing the the much is the cost of accounts, that where So that of At acquisition, acquisition. to, than a you measure acquisition, think because about to cost little through the better fintech of to, more you is which That's gravitates partnership, cost day, in is the it of right? customer optimal get part the that's of branch accelerated better effectiveness the you brings

You optimum optimum is basis, straight-through able manner. done be can income, servicing, you an set various where income a at a enabling paperless a level to things customers another done fintech to can to you customers' to you in or basis But a it relationship where feature an self-service cost on on service cost in that customer do or other is mobile on or management, banking that where in support measure it activity or to execute. a we the whether a how goes that through are things that are

stuff, than measure done, customers a how the we ones executing the than money, it, more the we we management. call customers it little the our right? relationship about that a third, is the the through XX% third mentioned two-thirds little of, past a of where value less on aspect have to last Now, you we bank, -- said than So year, that of right? XX% less of And provide we think are where in which right, which most somewhere are I relationship management, on have the

and any relationship physical through day, That's at published acquisition, the that end past. we of bring the any our approach about management, this the the channel, it least at have day, you of any can them service in cost case, talked we you way, to optimum through end through customers in what value the So of comes in the right? at have

management So that you think relationship the brings about in.

in are there Now, things certain relationship management.

how with behavior and is intent that we've For the internally it management, have we we orders but with relationship the about And recommendations XX have the relationship it there, have last engagement is period, example, the right, to based next that customer customer, the terms that analytics-based we in actually economy for million through months -- customers, helps implemented, an on purchase. come, that recommendations again, we implemented, the over driven analytics, engagement digitally the proprietary product, best through during preferences driven of COVID rank action the in delivery management. talked we XX

delivered, through where So that partnership approach, a from mobile is or through is that's there. So be through delivered Internet partnership capability value that right? comes or a It this delivered right? -- the fintech any something the an can't it or other banking be is can't relationship a banking gets because coming

about -- taken will think hope we So, it of I probably that perspective than a what that's it. said do. I've I leave or gives a two minute I've there, more I'll how

Unidentified Analyst

offline much, Srini. it Thank well. definitely so take you We'll as

Operator

from go is JP of Please question Morgan. next the The ahead. line Saurabh from

Unidentified Analyst

evening Hi, Srini. good

margin. question. interest One, one on your is this net Just

you So about how if positioned. rise, getting from clearly seems think should progression clearly to And The be book to seem better rates we here? better. the mix be

should from that better? ideally the go in your comment in NIM that this up will growth context, be growth, [POP] expect earlier line you shouldn't would here? the grow loan with And So that

Srinivasan Vaidyanathan

take being X.XX%, years, X.XX% is for seen assets asking all too. band right, have dynamics we thing in low because not you using what the average to X.X%, assets -- of want it we don't See, industry quoted denominator in band in because right, a part assets, a XX, with the but those, has case -- numbers what comes to this we denominator a X, of the what which that historically, that there's assets ago, of I in also sort confused with is, based which P&L past, higher you have at get yield, we of or process seen that's of which it, it current yield the a it which. X.X%, sequential again good think it, of those about also about be interest the the right? at journey interest-earning of time the where the to operated over end earning RWA, a XX, the on band by needs X.X%, right, and the coming, the mid-XXs, to band the mix because retail it average its spread and it's Thanks the Okay. we front call to higher the we call depends and it, X.X%, are And in operate. that of grow in seen, would the the to X.XX% growth key look that different at to right. comes And about, right, period journey. see have to so portfolio, retail of could So the comes part on that's is Currently, of, much coming, it that back -- matter, a the much the own from itself, say, at start recent that The Bank with the retail XX% That's way, we I rate on call there. X.X%. right, with retail. on to segment product, the next growth as have X more retail We it that take In to years right? with of the right, front, scenario, that's on the that whether loans right? was, had down two part risk more So in rating right? the brought one it's and and if its legs So grow, starting

to, A,B, to along targeted good D, C a going very we A, Last also, focus E, category on is and a a where to category that C, it's of back and should popular salaries had And which our as right take kind to right? C, up. out right? that, start quarter base quarters Category where many four-something, B, it also now. five we was B, broad have a with right; as products and So few came success segment, But with high-yield have category yield of going X.X%. of rates corporate starting this, better go we to for the quarter, we have come within a to -- This COVID life. for we are categorization A, category

and of the The that that model, come a analytics yield will come something segment. is can in segment we pricing than is And the -- to aspect risk -- rest. mind also to the typically other in relatively rest. lower the model risk our government risk-based So, with we'll be a government it keep relative analytics in a lower

to focus also. something is are also that continuing on focused that So on we

retail within the that much are at of we retail retail. mix come to within take broad-based the across segments quarters more to So of be we the up. all the the And a will mix few of end day, talking the for about

up. think is the NIM that what one aspect can we So about of coming

repo other very -- you about loan to the under linked XX, repo right? rate rate, loans If of so The to right, and mid-single is about digit now, linked think also a is little book when -- one-third the our composition high the was. is back itself, rate it rate it low mid- were of -- or linked they're digit, very we that that you three to T-bills, in which very but so years NIM of if I end of means And ago, We're lethal, call right? to right? single about is slightly aspect under XX, right about range, slightly components the go NIM third two, two, low. repo the the these wouldn't

move and a rate that cost time it it, is is the think come can to lag. up, funds of And course, right? of come you cost funds way the on deposits bring So in cost environment impact starts rate have on mix give -- too. up I'm of will the that up, the lag, an with move deposits, one not and to going as So retail moved the of something. is the to another a can with of now But kind starts and come of saving has necessarily, the that's the can the that. it that about saying, rate

Unidentified Analyst

it, Got Srini.

operating loan to trying up, your coming shouldn't up, was ideally, growth your about that's was move that better limited tend So the should if point what NIMs I that? is to profit than it I be so move

Srinivasan Vaidyanathan

it's you the get from then view, perspective So that point right? least continuously that need a term. to right, continuous you those say, is my of investing, to my be at I good where but from you long I'll you that tell investments, mean point you make

the change. right, static So in other right? is term, short a don't in you If book, say it say, what make any at you look

a be. these change should mix two investment, invest need the it future. to to investment. the my yes, segment But investment, for and the changes, in I from change the higher-yield get for that It not that the is model, allow be, will people about do branch Just the to you dynamic unidimensional remarks between you where know loans should it We a That's be about alluded retail, model a that right? about the technology opening why segment the be future. and

see today. don't You it return a on

inter robust will from the a XX state, productivity. You Because maturity to a a years between to state years be couple in people years on years' X to model right? in is There it to three reasonable the of see two time, branch years and takes get to right? be return

we investments those those. on make so to continuous And need

rate. limiting PPOP a is kind profit because that I that operating branches. pre-provision have growth And so, we've been That's continuously, historically we that or ones the how mentioned why of added the lending

last years you do think years, are And a years X branches X about three In X,XXX so last if the to continuously right? kind years, to -- added longer maintained dynamically investments branches, that that these in the to XX XX so last the of come. years. to it's So model we've in X,XXX we added the one we've for to term

Operator

from of next the ahead. Macquarie. Please go from line Ganapathy The question Suresh is

Suresh Ganapathy

regulator payments it's But on from a because something down? I this further that you the fees just the second to sense the to I got debit payment-related be questions experience? can are in what question I'm that, think cards? fees. question digital always -- just be paper, difficult pressure the credit respect all Srini, thinking. monetizable? Can the reduction Can do the a been new why payments course, is and everything asking with secondly, I'm us these tell know the for And fees, to So of coming with asking as, seeing interchange there on guess MDR reason be to what are on there products is MDRs can -- you levels the these cards? has have on really UPI the you has

So to the regulator not is phenomenon. if be is quarter going transaction to down in the then cost, as one this thinking bring direction one only

management several taking care subsequent challenges regulatory is be about the You're prepared some going quarters. of for here? How the of to thinking

Srinivasan Vaidyanathan

on are we think to two what pressure we to And But and One view, been a the nice. about and address steady is It interchange point of itself been quite in right? see interchange -- what no There or on rate or terms from has MDR think, about MDR. of the quite this. right? it has it's indeed important experience and there say we aspects

recent is line. is So right. that been a of all rate fee has from inhibiting not that something quite experience our our kind The

basis, if a the we an it an anything that it interchanged come we'll because Now much -- when card that it MDR the stays third-party interchange through case our is is will a internal means for we and a address, if on MDR third-party issuing issuer. business don't MDRs, to we don't customer interchange. to easy [Indiscernible] MDR, card, make we is So don't That means make that right? -- make MDR where to matter. -- card have address card, we See issuing net on business

grow reasonable as are comes have it's models such, that because as along away. million to various is nothing that's there. We MDR such but business MDR value is right, because relationship there, neutral, have and very, do but there to liability, as liability And we such with it comes or that take the away nothing on started. pretty to MDR a that come which to So vehemently pursue to merchant so of strategy there very sandwich relationship, value, on take still it is still already a asset continuously strategy, we we MDR part X.XX and lot which that the of working since have a grow we we

So that's one.

so on when there, that the of interchange interchange draw should transactors the the offered sales If do if isolation strategy. costs or in any have and there. us, question, a be P&L who funds looked rewards like P&L the looked which pressure into Now, the not MDR other what the the is be late, of should means are the on which side, context that in the what is the are is cash the coming you of at. earlier of, those card, right? side, these, of is cost sales, right, and -- is cashback to enhancement only pay funds, the the promotion the cashback being you and Cost And interchange, who context at and Interchange to cost pure marketing them the keep draw of cost that keep -- revolver transactors, a is, the to that so type in on it for more alluded there other steady. spend held some So it keep limits right? Suresh, to sandwich advances the habitually see people on I limit reward you do than

certain and side the liability do engaged the on are customer the keep You because customer. a you things of customer, you asset able the to the on slope got side of

and then can't which any your sales levers reason, rewards, you promotion. right, any at when move gets which you marketing operated, you has cashback, look at the on then down, if to for right, is that predict or at the your P&L look So, interchange look for reason the up you when you get other

at And try all the profitability. so, you of manage to P&L and look those to

Operator

gentlemen, conference comments. the Ladies you. today. was question to would like Thank closing now for I hand to and Mr. for that last over Vaidyanathan the

Srinivasan Vaidyanathan

Ajit Jennifer. if Investor you, could of all stay Thank We in for your understanding, Okay. the will we touch from you. And help more have at in you us. future. Shetty some you nothing participants use engagement. with to today. Thanks dialing do and point Please be for appreciate our that in in your Relations the available talk time Thank

Operator

joining. behalf conference. On Thank all Thank you. HDFC of Limited, Bank this you that concludes for

You disconnect may now your lines.

HDFC Bank Limited (HDB) 17 Jan 222022 Q3 Earnings call transcript