The headquarters of India’s HDFC bank is pictured in Mumbai, India.
| Photo Credit: REUTERS
HDFC Bank Ltd reported standalone net profit for first quarter that ended on June 30, 2023 grew 30% to ₹11,952 crore from the year-ago period led by improvement in asset quality, 28% growth in other income and 21% growth in Net Interest Income (NII).
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The bank’s net revenue during the quarter grew by 26.9% YoY to ₹32,829 crore. NII grew by 21.1% to ₹23,599 crore YoY and Core net interest margin was at 4.1% on total assets, and 4.3% based on interest earning assets, the bank said in a filing.
“Provisions and contingencies for the quarter were ₹2,860 crore as against ₹ 3,188 crore for the year-ago period. The total credit cost ratio was at 0.70%, as compared to 0.91% for the quarter ending June 30, 2022,” Srinivasan Vaidyanathan, CFO, HDFC Bank said in a conference call. .
The bank’s consolidated net revenue grew by 25.9% to ₹35,067 crore for the quarter Year on Year (YoY) and consolidated net profit at ₹12,370 crore, grew 29.1% YoY.
Total balance sheet size as of June 30, 2023 was ₹25,01,693 crore, up 18.6% YoY.
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Total Deposits grew 19.2% to ₹19,13,096 crore and CASA deposits grew by 10.7% with savings account deposits at ₹5,60,604 crore and current account deposits at ₹2,52,350 crore.
Total advances for the quarter grew 15.8% to ₹16,15,672 crore. Domestic retail loans grew by 20.0%, commercial and rural banking loans grew by 29.1% and corporate and other wholesale loans grew by 11.2%. Overseas advances constituted 2.6% of total advances.
The bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 18.9% as on June 30, 2023 as against a regulatory requirement of 11.7%.
Gross non-performing assets were at 1.17% of gross advances as on June 30, 2023 (0.94% excluding NPAs in the agricultural segment), as against 1.12% as on March 31, 2023 (0.94% excluding NPAs in the agricultural segment), and 1.28% as on June 30, 2022 (1.06% excluding NPAs in the agricultural segment). Net non-performing assets were at 0.30% of net advances as on June 30, 2023.
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Mr. Vaidyanathan said the merger of HDFC Ltd with the bank was effective July 1, 2023 and the bank would continue to grow its’ erstwhile parent’s home loan portfolio.
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