HDFC Bank releases Q1FY23 results; here are top five takeaways

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26 Aug, 2025 12:21

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HDFC Bank on July 16 reported strong first quarter earnings with double digit growth in bottomline on the back of lower provisions and steady asset growth. Here are the top five takeaway from India’s largest private lender’s Q1Fy23 earnings:

The lender's consolidated net profit for Q1FY23 stood at Rs 9,579 crore, up 20.9 percent year-on-year  YoY. This was on the back of lower provisions and higher asset growth.

The private bank’s total loans stood at Rs 13.95 lakh crore as on June 30, up 21.6 percent YoY. Retail loans, which accounted for 39 percent of the bank’s advances, grew by 21.7 per cent YoY, while commercial and rural banking loans, accounting for 35 per cent of loans, grew by 28.9 per cent on year. Corporate and other wholesale loans grow by 15.7 per cent YoY during the reporting quarter.

Double digit credit growth, with corporate loan growth returning back to healthy levels, suggests the credit offtake in India is on rise post 2 years of slump during Covid-19.

“Net interest income for the quarter ended June 30, 2022 grew by 14.5% to Rs 19,481.4 crore from Rs 17,009.0 crore for the quarter ended June 30, 2021, driven by advances growth of 22.5%, deposits growth of 19.2% and total balance sheet growth of 20.3%,” the bank said in a regulatory filing.

HDFC Bank’s asset quality deteriorated in the quarter under review with gross non-performing assets (GNPAs) ratio rising to 1.28 percent, up 11 basis points (bps) from the previous quarter, but lower 19 bps on a YoY basis.

The net NPAs stood at 0.35 per cent as on June end, 3 bps higher sequentially and 15 bps lower on YoY basis.

HDFC Bank’s capital adequacy ratio (CAR) stood at 17.5 per cent as on June 30, as against 18.9 percent in Q4Fy22 and 19.1 percent in Q1FY22.

Even as 17.5 percent CAR remains comfortably above the regulatory mandate, the downward trajectory points that the lender will soon raise capital to support growth, analysts said.

During Q1FY23, HDFC Bank’s core net interest margin stood at 4.1 percent on total assets, and 4.2 percent on interest earnings assets. The trends are broadline stable in comparison with previous quarter.

During April-June, HDFC Bank added 2.6 million new liabilities accounts, as per the statement.

Total deposits grew 19.2 percent to Rs 16.04 lakh crore as on June end. CASA deposits grew by 20.1 percent YoY with savings account deposits at Rs 5,14,063 crore and current account deposits at Rs 2,20,584 crore as on June 30.