Analysts expected HDFC Bank to report a standalone net profit of ₹11,580 crore for the April-June period, showing an increase of 25.9 per cent compared to the same period last year. The bank’s actual profit numbers were above this estimate.
Here are six key points from the bank’s Q1FY24 scorecard.
Revenue and profit numbers
In a BSE filing, the lender said its consolidated net revenue grew by 25.94 per cent year-on-year (YoY) to ₹35,067 crore for Q1FY24 from ₹27,844 crore in the same quarter last year. On a standalone basis, the bank’s net revenue grew by 26.9 per cent to ₹32,829 crore in Q1FY24 from ₹25,870 crore in Q1FY23.
The consolidated net profit of HDFC Bank rose by 29.14 per cent YoY to ₹12,370.38 crore from ₹9,579.11 crore in the June quarter of FY24. Standalone net profit for the quarter rose 29.97 per cent YoY to ₹11,951.77 crore from ₹9,195.99 crore in the same quarter last year.
NII grows significantly
The bank’s net interest income (NII), which is interest earned minus interest expended, for Q1FY24 grew by 21.1 per cent to ₹23,599 crore from ₹19,481 crore in the corresponding quarter of the previous financial year. Core net interest margin stood at 4.1 per cent on total assets, and 4.3 per cent based on interest-Earning assets, said the bank.
Asset quality
The bank’s asset quality declined slightly in Q1FY24. HDFC Bank’s asset quality declined sequentially during the quarter ended June 2023. Its gross non-performing assets (NPA) increased 5.7 per cent to ₹19,045.1 crore from ₹18,019 crore, while net NPA rose 9.4 per cent to ₹4,776.9 crore from ₹4.368.4 crore, QoQ.
As per the bank’s filing on BSE, gross non-performing assets (GNPA) were at 1.17 per cent of gross advances as on June 30, 2023 (0.94 per cent excluding NPAs in the agricultural segment), against 1.12 per cent as on March 31, 2023 (0.94 per cent excluding NPAs in the agricultural segment), and 1.28 per cent as on June 30, 2022 (1.06 per cent excluding NPAs in the agricultural segment). Net non-performing assets were at 0.30 per cent of net advances as on June 30, 2023.
PPoP sees healthy growth
Pre-provision operating profit (PPoP) for Q1FY24 grew 22.2 per cent YoY to ₹18,772 crore. Provisions and contingencies for the quarter under review stood at ₹2,860 crore against ₹3,188 crore YoY, HDFC Bank said.
Balance sheet
The total size of the bank’s balance sheet by the end of the June quarter stood at ₹25,01,693 crore against ₹21,09,772 crore in the same quarter last year, up 18.6 per cent YoY.
Total deposits of the bank grew on a healthy note to ₹19,13,096 crore as of June 30, 2023, up 19.2 per cent YoY. CASA deposits grew by 10.7 per cent with savings account deposits at ₹5,60,604 crore and current account deposits at ₹2,52,350 crore.
Total advances grew by 15.8 per cent YoY to ₹16,15,672 crore as of June 30, 2023. Domestic retail loans grew by 20 per cent, commercial and rural banking loans grew by 29.1 per cent, and corporate and other wholesale loans grew by 11.2 per cent.
EPS and BVPS
Earning per share (EPS) for Q1FY24 stood at 22.2 and book value per share (BVPS) as of June 30, 2023, was ₹542.7, the bank said in an exchange filing.
Read more: HDFC Bank Q1 Results: HDFC Bank Q1 net profit rises 30% YoY to ₹11,952 crore; NII jumps 21%
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Updated: 17 Jul 2023, 02:20 PM IST