HDFC Bank announced a net profit of Rs 11,951 crore for the first quarter of FY24, covering the period from April to June, marking a significant increase from Rs 9,196 crore in the same quarter of the previous year. The reported net profit surpassed market expectations, exceeding the predictions of at least four brokerages, who had estimated a net profit of Rs 11,581 crore.
During the quarter ending on June 30, 2022, the bank’s net interest income (NII) experienced a growth of 21.1 percent, reaching Rs 23,599 crore compared to Rs 19,481 crore in the previous year’s corresponding quarter. The core net interest margin was recorded at 4.1 percent based on total assets and 4.3 percent based on interest-earning assets.
HDFC Bank demonstrated improvements in its asset quality, with the gross non-performing assets (GNPA) ratio improving to 1.17 percent from 1.28 percent in the same period a year ago. Similarly, the net non-performing assets (NNPA) ratio decreased to 0.30 percent from 0.35 percent last year. The bank’s net profit witnessed a notable increase, rising from Rs 9,196 crore in the corresponding quarter of the previous year to Rs 11,951 crore in Q1FY24.
In response to these positive results, the bank’s stock experienced a nearly 1.5 percent rise and was trading at Rs 1,668 at 1.25 pm on the NSE. On the deposit side, HDFC Bank’s total deposits reached Rs 19.13 lakh crore, showing a growth of 19.2 percent year-on-year. Within this, current account and savings account (CASA) deposits grew by 10.7 percent, with total current account deposits amounting to Rs 2.52 lakh crore and savings account deposits amounting to Rs 5.6 lakh crore. Time deposits of the bank reached Rs 11 lakh crore, reflecting a growth of 26.4 percent.
The bank’s total advances grew by 15.8 percent year-on-year, reaching Rs 16.15 lakh crore. Domestic retail loans experienced a growth of 20 percent, while commercial and rural banking loans grew by 29.1 percent, and corporate and other wholesale loans grew by 11.2 percent. HDFC Bank’s treasury segment reported a revenue of Rs 10,537 crore, a significant increase from Rs 7,379 crore in the corresponding quarter of the previous year.
The bank’s revenue from retail banking, which accounted for a major portion of its earnings, reached Rs 42,939 crore compared to Rs 31,685 crore in the previous year. Additionally, revenue from wholesale banking stood at Rs 28,332 crore, a notable increase from Rs 18,642 crore in the previous year.