
HDFC Bank recently announced its financial results for the October-December quarter of 2023-24. The net profit for this period was Rs 16,372 crore, showing a substantial increase of 33.5% from the previous year’s figure of Rs 12,259 crore.
Net Interest Income (NII) and Market Estimates
The bank’s Net Interest Income (NII) reached Rs 28,470 crore, indicating a growth of 23.9% compared to the same quarter in the previous fiscal year, which was Rs 22,990 crore. Although this was slightly lower than the market estimate of Rs 29,554 crore, the net profit aligned closely with market expectations at Rs 16,372 crore.
Asset Quality and Non-Performing Assets (NPA)
HDFC Bank reported a gross non-performing assets (NPA) ratio of 1.26%, a slight increase from the previous year’s 1.23%. However, the net NPA for the quarter improved to 0.31% from 0.33% in the same period last year. Srinivasan Vaidyanathan, CFO of HDFC Bank, emphasized the historically positive trend in the bank’s asset quality during a press conference.
Provisions and Contingent Provisions
Provisions for HDFC Bank rose by 50%, totaling Rs 4,216 crore. Notably, this figure includes contingent provisions of around Rs 1,212 crore related to investments in alternative investment funds.
Loan Growth and Advances
Total advances for the bank witnessed a significant increase of 62.4%, reaching Rs 24.69 lakh crore. The growth was driven by a surge in domestic retail loans (111% increase), commercial and rural loans (31.4% increase), and corporate and wholesale loans (11.2% increase, excluding non-individual loans of eHDFC Ltd.).
Capital Adequacy Ratio (CAR) Impact and Risk Weight Assets
The bank experienced a 97 basis points (bps) impact on the Capital Adequacy Ratio (CAR) due to an increase in the risk weight assets, particularly on unsecured and other loans.
Deposits and Current/Savings Accounts (CASA)
Total deposits for HDFC Bank grew by 27.7% to Rs 28.47 lakh crore in the October-December FY24 quarter. Current account and savings account deposits increased by 9.5%, with savings account deposits reaching Rs 5.79 lakh crore and current account deposits at Rs 2.58 lakh crore.
Stock Performance
HDFC Bank’s shares closed at Rs 1678.95 apiece on the Bombay Stock Exchange (BSE), reflecting a 0.42% increase in trading.