HDFC Bank on July 16 reported Rs 9,195.99 crore standalone net profit for the quarter ended June 30, up 18.79 percent from the year ago period. It missed CNBC TV-18 poll estimate of Rs 9409 crore.
The lender's net interest income (NII) stood at Rs 19,481.40 crore, up 14.5 percent year-on-year (YoY). The rise in the NII was driven by 22.5 percent growth in advances and 19.2 percent growth in deposits. The lender’s total balance sheet grew 20.3 percent.
The Bank's core net revenue, excluding trading and Mark to Market losses, grew 19.8 percent to 27,181.4 crore from 22,696.5 crore in the same quarter of the previous fiscal year.
Lender's core net interest margin was at 4.0 percent on total assets, and 4.2 percent based on interest earning assets. “We continued to add new liability relationships at a robust pace of 2.6 million during the quarter,” the lender said in a release.
Pre-provision Operating Profit (PPOP) stood at Rs 15,367.8 crore. PPOP, excluding trading and Mark to Market losses, grew 14.7 percent on YoY basis.
The country's largest private sector lender made provisions worth Rs 3,187.7 crore in the first quarter of FY23 (which were specific loan loss provisions), down about 34 percent from Rs 4,830.8 crore for Q1FY22.
The lender said it added 725 branches and 29,038 employees over the last twelve months and 36 branches and 10,932 employees during the quarter under review. "This, and other investments made during the quarter, will position the Bank to capitalise on the growth opportunity," it said.
Balance SheetHDFC Bank said its total balance sheet size as of Q1FY23 stood at Rs 21,09,772 crore, registering a growth of 20.3 percent. Total deposits grew 19.2 percent to Rs 16,04,760 crore.
CASA deposits climbed 20.1 percent with savings account deposits at Rs 5,14,063 crore and current account deposits at Rs 2,20,584 crore. Time deposits were stood at Rs 8,70,113 crore, up 18.5 percent from the corresponding quarter of the previous fiscal, resulting in CASA deposits comprising 45.8 percent of total deposits.
Total advances advanced 21.6 percent to Rs 13,95,068 crore. Retail loans grew 21.7 percent, while commercial and rural banking loans rose 28.9 percent and corporate and other wholesale loan climbed 15.7 percent.
Asset Quality
Gross non-performing assets (NPA) were at 1.28 percent of gross advances as against 1.47 percent in the same quarter last year. Net NPAs stood at 0.35 percent of net advances.
The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 9,630 crore as on June 30, 2022. Total provisions (comprising specific, floating, contingent and general provisions) were 170 percent of the gross NPAs.
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