HDFC Bank, the country’s largest private lender, recorded 30 per cent Year-on-Year growth in first-quarter earnings, exceeding forecasts.
The bank’s standalone net profit was Rs 11,952 crore, up from Rs 9,196 crore in the same period the previous year. Net revenue for the quarter ended June 30, 2023 increased by 26.9 per cent to 32,829 crore from 25,870 crore for the quarter ended June 30, 2022.
Net interest income (interest received less interest expenditure) increased by 21.1 per cent to 23,599 crore for the quarter ended June 30, 2023, from 19,481 crore for the quarter ended June 30, 2022. The core net interest margin on total assets was 4.1 per cent, and the margin on interest earning assets was 4.3 per cent.
Operating expenses for the quarter ending June 30, 2023 were 14,057 crore, a 33.9 per cent increase over the previous year’s corresponding quarter of 10,502 crore. For the quarter, the cost-to-income ratio was 42.8 per cent.
Pre-provision Operating Profit (PPOP) of 18,772 crore increased by 22.2 per cent over the previous year’s corresponding quarter. Provisions and contingencies were 2,860 crore for the quarter ended June 30, 2023, compared to 3,188 crore for the quarter ended June 30, 2022. The total credit cost ratio was 0.70 per cent, down from 0.91 per cent in the quarter ended June 30, 2022.
Profit before tax (PBT) was 15,912 crore for the quarter ending June 30, 2023. After deducting tax of 3,960 crore, the bank generated a net profit of 11,952 crore, a 30.0 per cent rise over the quarter ended June 30, 2022.
According to Basel III guidelines, the bank’s total capital adequacy ratio (CAR) was 18.9 per cent as of June 30, 2023 (18.1 per cent as of June 30, 2022), compared to a regulatory requirement of 11.7 per cent, which includes a 2.5 per cent Capital Conservation Buffer and an additional 0.2 per cent requirement due to the bank’s designation as a Domestic Systemically Important Bank (D-SIB). As of June 30, 2023, the Tier 1 CAR was 16.9 per cent and the Common Equity Tier 1 Capital ratio was 16.2 per cent. The risk-weighted assets stood at 16,70,899 crore.
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The Bank’s distribution network was 7,860 branches and 20,352 ATMs / Cash Deposit & Withdrawal Machines (CDMs) throughout 3,825 cities / towns as of June 30, 2023, up from 6,378 branches and 18,620 ATMs / CDMs across 3,203 cities / towns as of June 30, 2022. Our branches are located in semi-urban and rural locations in 52 per cent of cases. Furthermore, we have 15,194 business correspondents, who are mostly staffed by Common Service Centres (CSC). As of June 30, 2023, there were 1,81,725 employees (compared to 1,52,511 on June 30, 2022).
As of June 30, 2023, gross non-performing assets were 1.17 per cent of gross advances (0.94 per cent excluding NPAs in the agricultural segment), compared to 1.12 per cent on March 31, 2023 (0.94 per cent excluding NPAs in the agricultural segment) and 1.28 per cent on June 30, 2022 (1.06 per cent excluding NPAs in the agricultural segment). On June 30, 2023, net non-performing assets were 0.30 per cent of net advances.
