HDFC Bank on Saturday recorded a standalone profit for the first quarter of FY25 at Rs 16,174.75 crore, up 35.3 per cent in comparison to Rs 11,951.77 crore during the same period last fiscal year, surpassing estimates. The Bank posted Net Interest Income (NII) at Rs 29,837.1 crore during the quarter. According to a CNBC TV18 poll, HDFC Bank was expected to report Q1 profit at Rs 15,693.1 crore and NII was estimated at Rs 29,583.5 crore. On a consolidated basis, the private sector bank posted Q1 profit at Rs 16,474.85 crore. This holds more importance as HDFC Bank completed a year since it announced its merger with HDFC Ltd, following the receipt of all requisite shareholder and regulatory approvals, with effect from July 1, 2023.
The Bank posted total interest income at Rs 73,033.14 crore, up 50.3 per cent on-year as against Rs 48,586.81 crore recorded during the first quarter of FY24. The provisions and contingencies for the quarter were at Rs 2600.00 crore. The total credit cost ratio was at 0.42 per cent as compared to 0.70 per cent for the quarter ended June, 2023.
A year after the merger, on July 18 (Thursday), in a note to the shareholders and investors, HDFC Bank CEO Sashidhar Jagdishan had said that the Bank will focus on achieving profitable growth while maintaining high asset quality standards. He also said that it will also work to lower its credit-to-deposit ratio to pre-merger levels. After the merger, the Bank received a large pool of mortgage loans to its portfolio but a much smaller amount of deposits, taking its CD ratio above the 100 per cent mark. Prior to the merger, the bank’s CD ratio was at 85 per cent and it had maintained the ratio at 85-87 per cent over a long period.
HDFC Bank’s Q1 performance across segments
The private sector lender posted revenue for its treasury segment at Rs 15,320.59 crore. Its retail banking segment posted revenue at Rs 68,054.79 crore and the wholesale banking segment’s Q1 revenue was recorded at Rs 47,173.95 crore. And the other banking business saw a revenue of Rs 7,994.16 crore.
HDFC Bank’s asset quality
HDFC Bank’s gross NPA for the quarter came in at Rs 33,035.69 crore and net NPA was at Rs 9,508.44 crore for the quarter ended June 2024. Meanwhile, gross NPA ratio for Q1FY25 was recorded at 1.33 per cent as against 1.17 per cent during the same quarter of FY24. Net NPA ratio was at 0.39 per cent during Q1FY25 as against 0.30 per cent a year earlier.
HDFC Bank’s balance sheet
Total balance sheet size as of June 30, 2024 was at Rs 3567.20 thousand crore. Total deposits recorded by HDFC Bank was at Rs 2379.10 thousand crore, up 24.4 per cent on-year. CASA deposits grew by 6.2 per cent with savings accounts deposits at Rs 596.40 thousand crore and current account deposits at Rs 1515.40 thousand crore. This resulted in CASA deposits comprising 36.3 per cent of total deposits.
While retail loans grew by 100.4 per cent, commercial and rural banking loans grew by 23 per cent and corporate and other wholesale loans grew by 18.7 per cent.
HDFC Bank’s network reach
As of June 30, 2024, HDFC Bank’s distribution network was at 8,851 branches and 21,163 ATMs across 4,081 cities, wherein 52 per cent of its branches are located in semi-urban and rural areas. In addition, it has 15,146 business correspondents, which are primarily manned by Common Service Centres (CSC). In terms of employees, HDFC Bank had 2,13,069 employees as on June 30, 2024 as against Rs 1,81,725 employees at the end of the first quarter of FY24.