Thread by @Abhishe27960014

6 Key Takeaways of HDFC Bank Result in this🧵

#HDFCBank #BANKNIFTYFUTURE

1) Banks make money by charging more interest on loans they give out than the interest they pay to people who save their money in the banks.

Interest Income = Interest Earned - Interest Paid⬇️

Hence, Interest income is an important number for a bank to look at.

HDFC Bank made 25% more money from interest income compared to last year which is a very big positive for the bank.

2) Net Profit also grew up by 18.5% to approx. 12,000 crores in Q3.

3) When a bank lends more money to customers, the bank has better chance to make more money.

HDFC Bank loaned 19.5% more money to customers this time, which is good for the bank's business.

4) Banks keep track of the money that people don't pay back by using a number called NPA. A lower NPA number means that the bank is able to get most of its money back from the people who borrowed it.

HDFC Bank NPA ratio stands at 1.23% which is considered very good.

5) HDFC Bank gave out 23% more personal loans than last year, which is good for the bank because personal loans are the type of loans that make the bank the most money. So, this increase in personal loans is good for the bank's profits.

6) Lastly, HDFC Bank stands as CASA ratio of 44% which is good.

CASA Ratio=(Deposits in Current & Saving Accounts) /(Total Deposits)

Bank pay less interest on money in current & savings accounts than it does on money in fixed deposit accounts. Hence, higher CASA is preferred.