HDFC Bank on Monday posted profit during the second quarter of FY24 at Rs 16,811.41 crore, up 51.1 per cent as against Rs 11,125.21 crore during the same quarter last year, surpassing estimates. The private sector lender posted NII at Rs 27,385 crore, up 30.3 per cent as against Rs 21,021 crore during the same quarter last year. This is the first quarterly financial result of HDFC Bank after it was merged with Housing Development Finance Corporation (HDFC) effective July 1. The bank’s net revenue grew by 114.8 per cent to Rs 66,317 crore during Q2FY24 from Rs 30,871 crore during the same period of FY23. Earnings per share for the quarter ended September 2023 was Rs 22.2 and book value per share as of September 30, 2023 was Rs 552.2.
According to a CNBC TV18 poll, HDFC Bank was expected to post Q2 profit at Rs 14,616 crore and NII at Rs 28,187 crore. HDFC Bank recorded total interest earned during the period in review at Rs 75.04 thousand crore, up 83.3 per cent in comparison to Rs 40.93 thousand crore during the same quarter last year.
On a standalone basis, HDFC Bank’s net revenue grew by 33.1 per cent on-year to Rs 38,093 crore during the second quarter of FY24. Core net interest margin for the quarter, HDFC Bank said, was 3.65 per cent on total assets and 3.85 per cent on interest earnings assets. After absorbing debt funded cost for additional liquidity and merger management, the reported NIM for the quarter is 3.4 per cent on total assets and 3.6 per cent on interest earning assets.
Operating expenses for the quarter ended September 2023 were Rs 15,399 crore, up 37.2 per cent from Rs 11,225 crore during the corresponding quarter of previous year. The cost-to-income ratio for the quarter was at 40.4 per cent. Pre-provision operating profit (PPOP) was at Rs 22,694 crore, up 30.5 per cent on-year.
HDFC Bank’s balance sheet
HDFC Bank reported total balance sheet size as of September 30, 2023 at Rs 34,16,310 crore as against Rs 22,27,893 crore the previous year. “Total deposits showed a healthy growth of approximately Rs 1.1 lakh crore during the quarter post merger, and were at Rs 21,72,858 crore as of September 30, 2023, an increase of 29.8 per cent over September 30, 2022. CASA deposits grew by 7.6 per cent withs savings account deposits at Rs 5,69,956 crore and current account deposits at Rs 2,47,749 crore,” the company said. Time deposits, it added, were at Rs 13,55,153 crore, up 48.3 per cent on-year, resulting in CASA deposits comprising 37.6 per cent of total deposits as of September 30, 2023.
HDFC Bank said that while domestic retail loans grew by 112.1 per cent, commercial and rural banking loans grew by 29.5 per cent and corporate and other wholesale loans grew by 7.9 per cent
HDFC Bank’s asset quality
HDFC Bank’s gross non-performing assets were at 1.34 per cent of gross advances as of September 2023, as against 1.41 per cent on a performa merged basis as on June 30, 2023, and 1.23 per cent as on September 30, 2022. Net non-performing assets were at 0.35 per cent of net advances as on September 30, 2023.
HDFC Bank’s network presence
The private sector bank’s distribution network was at 7,945 branches and 20,596 ATMs across 3,836 cities/ towns at the end of the second quarter of FY24 as against 6,499 branches and 18,868 ATMs across 3,226 cities/ towns during the same period last year. “52 per cent of our branches are in semi-urban and rural areas. In addition, we have 15,352 business correspondents, which are primarily manned by Common Service Centres (CSC),” it said. The number of employees at the end of the quarter was at 1,97,899 as against 1,61,027 at the end of of the same period last year.