HDFC Bank reported a 19% year-on-year rise in standalone net profit to Rs 9,195.99 crore for the quarter ended June 30, after absorbing a mark-to-market (MTM) loss of Rs 1,311.7 crore.

Pre-provision operating profit (PPOP) stood at Rs 15,367.8 crore. PPOP, excluding trading and MTM losses, grew 14.7% on YoY basis.

 NII up 14.5%

The lender's net interest income (NII) stood at Rs 19,481.40 crore, up 14.5% from the year-ago quarter.

Non-interest income grew to Rs 9,011.6 crore from Rs 6,288.6 crore a year ago.

Balance sheet grows 20.3%

The country’s largest private lender’s total balance sheet size as of Q1FY23 stood at Rs 21,09,772 crore, registering a growth of 20.3%.

Total revenue up 13%

 HDFC Bank reported a total revenue of Rs 41,560.27 crore in June 2022, up 13% from Rs 36,771.47 crore a year ago.

 Total net revenue for the April-June quarter was at Rs 25,869.6 crore.

 Core net revenue, excluding trading and MTM losses, grew 19.8% to 27,181.4 crore from 22,696.5 crore in the same quarter of the previous fiscal

 The private lender's core net interest margin was at 4% on total assets, and 4.2% 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.

 Other income

 The four components of other income for the quarter ended June were fees & commissions of  Rs 5,360.4 crore (Rs 3,885.4 crore in the corresponding quarter of the previous year); foreign exchange & derivatives revenue of Rs 1,259.3 crore (Rs 1,198.7 crore in the corresponding quarter of the previous year); loss on sale/revaluation of investments of Rs 1311.7 crore (gain of Rs 601.0 crore in the corresponding quarter of the previous year); and miscellaneous income, including recoveries and dividend, of Rs 1,080.2 crore (Rs 603.5 crore in the corresponding quarter of the previous year).

 Other income, excluding trading and MTM losses, grew by 35.4% over the year-ago period.

 Loan growth in Q1 up 21.6%

HDFC Bank’s total advances grew 21.6% year-on-year to Rs 13,95,068 crore.

Retail loans grew 21.7% year-on-year to Rs 557,880 core while commercial and rural banking loans rose 28.9% to Rs 498,064 core and corporate and other wholesale loan rose 15.7%  to Rs 363,939 crore.

Retail loans now account for 39% of the bank’s loan book.

Overseas advances made up 3.5% of total advances.

Total deposits up 19.2%

The bank’s total deposits stood at Rs 1,604,760 crore as on 30 June, showing a year-on-year growth of 19.2%.

CASA (current account savings account) deposits climbed 20.1%, with savings account deposits at Rs 5,14,063 crore and current account deposits at Rs 2,20,584 crore.

The term deposits of the bank grew by 18.5% to  Rs 8,70,113 crore over the year-ago period.

CASA deposits accounted for 45.8% of the bank’s total deposits as on 30 June.

Branch expansion

HDFC Bank added 725 branches and 29,038 employees over the last 12 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," the bank said.

Asset quality

As on 30 June, the bank’s gross non-performing asset (NPA) ratio was at 1.28 % of gross advances or Rs 1,78,56.87 crore,  lower than 1.47% the bank reported in the year-ago period. It was, however, higher than 0.32% reported in Q4FY22.

The net NPA ratio stood at 0.35% of net advances, down from 0.48% in Q1FY22. This was, however, marginally higher than 0.32% in Q4FY22.

Provisions

The lender made provisions worth Rs 3,187.7 crore in the first quarter of FY23 (which were specific loan loss provisions), down 34% from Rs 4,830.8 crore in Q1FY22.

The bank held floating provisions worth Rs 1,451 crore and contingent provisions of Rs 9,630 crore as on 30 June 2022. Total provisions (comprising specific, floating, contingent and general provisions) accounted for 170% of gross NPAs.

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