HDFC Bank Q1 results: Post-merger, retail loans constitute 57% of total book, says CFO

HDFC Bank reported a net profit of Rs 11,951 crore for the April-June quarter FY24, a jump from Rs 9,196 crore in the quarter ended June 30, 2022.

Retail loans constitute around 57 percent of the total loan book of HDFC Bank post the merger with parent Housing Development Finance Corporation (HDFC), said Srinivasan Vaidyanathan, Chief Financial Officer (CFO) of the bank in an interaction with journalists on July 17.

HDFC and HDFC Bank merger came into effect on July 1.

“Immediately after the merger with HDFC Ltd, our retail and wholesale advances stood at 57 percent and 43 percent (respectively),” Vaidyanathan said at the bank’s post-earnings media call.

Presently, the bank’s total retail advances stand at Rs 6.57 lakh crore, growing from Rs 5.57 lakh crore a year ago while wholesale and corporate advances stand at Rs 4.04 lakh crore as against Rs 3.63 lakh crore in the corresponding quarter last year.

Going ahead, Vaidyanathan said that the bank sees faster growth in retail advances compared to wholesale advances.

Also read: HDFC Bank Q1 Results: Net profit jumps 30% to Rs 11,951 cr, maintains healthy asset quality

“Over a period of time, we know that retail will start to grow, as the rate at which our retail book grew will far outpace the rate at which wholesale grew,” Vaidyanathan said.

On July 17, HDFC Bank reported a net profit of Rs 11,951 crore for the April-June quarter FY24, a jump from Rs 9,196 crore in the quarter ended June 30, 2022. The net profit slightly exceeded market expectations. At least four brokerages had predicted a net profit of Rs 11,581 crore whereas HDFC Bank reported a net profit of Rs 11,951 crore.

The bank's net interest income (NII) grew by 21.1 percent to Rs 23,599 crore from Rs 19,481 crore for the quarter ended June 30, 2022. Core net interest margin was at 4.1 percent on total assets, and 4.3 percent based on interest-earning assets.

The lender's gross non-performing assets (GNPA) ratio stood at 1.17 percent, improving from 1.28 percent in the corresponding period a year ago.

Similarly, the net NPA (NNPA) stood at 0.30 percent from 0.35 percent last year. The lender's net profit jumped from Rs 9,196 crore in the corresponding quarter last year to Rs 11,951 crore in Q1FY24.

HDFC Bank merged with HDFC Ltd on July 1, 2023 to create a combined asset base of around Rs 18 lakh crore. Termed as the biggest transaction in India’s corporate history, HDFC Bank on April 4, 2022 agreed to take over the biggest housing finance company in a deal valued at about $40 billion, creating a financial services titan.