HDFC Bank reported a 30% rise in its net profit for the quarter ended June 2023 to Rs 11,951.77 crore compared with Rs 9,195.99 crore a year ago.

This was the first quarterly numbers from the country’s largest private bank after its recent reverse merger with parent HDFC. On a consolidated basis, HDFC Bank’s bottom line rose 29% to Rs 12,370.38 crore compared with Rs 9,579.11 crore in the year-ago period.

The bank’s net interest income during the June quarter rose 21.1% to Rs 23,599.1 crore from Rs 19,481.4 crore in the corresponding period a year ago.

Core interest margin was at 4.1% on total assets and 4.3% based on interest earnings assets.

The consolidated net revenue in Q1FY24 grew by 25.9 % to Rs 35,067 crore, from Rs 27,844 crore last year.

Total balance sheet size as of 30 June 2023 was Rs 25,01,693 crore, up 18.6% from Rs 21,09,772 crore a year ago.

Asset quality

The lender’s ratio of gross non-performing assets (NPAs) to gross advances stood at 1.17%, from 1.12% as on 31 March 2023 and 1.28% as on 30 June 2022.

Net NPA ratio in Q1FY24 stood at 0.30% of net advances, against 0.27% in the preceding quarter and 0.35% last year. 

In absolute terms, the gross NPAs were at Rs 19,064.12 crore versus Rs 18,033.67 crore in the same period of the previous year.

Provisions

Pre-provision operating profit (PPOP) grew 22.2% to Rs 18,772 crore from Rs 15,367.84 crore a year ago.

Provisions and contingencies for the June quarter stood at Rs 2,860 crore versus Rs 3,188 crore a year ago.

Deposits

HDFC Bank's total deposit grew 19.2% year-on-year to Rs 19,13,096 crore in the June 2023 quarter. 

CASA (current account savings account) grew by 10.7%, with current account deposits at Rs 2,52,350 crore and savings account deposits at Rs 5,60,604 crore. Time deposits of the bank stood at Rs 11,00,142 crore, up 26.4% over the corresponding quarter of the previous year.

CASA deposits comprised 42.5% of total deposits as of 30 June 2023, the bank said in a release.

Advances

Total advances as of 30 June 2023 were at Rs 16, 15,672 crore, up 15.8% from Rs 13,95,068 crore in the year-ago period.

Domestic retail loans grew by 20%, commercial and rural banking loans by 29.1% and corporate and other wholesale loans by 11.2%.