HDFC Bank Q1 Result Update: Profit rises 19% YoY to Rs 9,196 crore; NII up 15%

HDFC Bank Q1 Result Update: Profit rises 19% YoY to Rs 9,196 crore; NII up 15%

On 16^th July 2022, HDFC Bank reported a net profit of Rs. 9,196 crores, up by 19% YoY from Rs. 7,729.64 crores. Lower provisions and improvement in the asset quality led to an increase in the overall earnings. Also, there was a sharp decline the credit cost. For the June quarter, provisions worth Rs 3,187.7 crore was recorded, down 34% YoY from Rs. 4830.8 crores. Provisions in the Q4 FY22 stood at Rs 3,312.35 crore.
However, the net profit dropped by 8.9 % QoQ from Rs. 10,055.18 crores. The company recorded revenue growth of 13% YoY to Rs. 41,560.27 crores during the June quarter as compared to the Rs. 36,771.47 crores in Q1 FY22.

HDFC Bank posted a net interest income (NII) of Rs. 19,481.4 crores, up by 14.5% from ₹17,009 crores in June 2021 on account of strong growth momentum. The increase in NII was driven by advances and deposits that recorded growth of 22.5% and 19.2% respectively. The total balance sheet grew by 20.3%. NIMs for the June quarter stood at 4.0%, which is stable QoQ & YoY. The total credit cost ratio was at 0.91% as compared to 1.67% for June 21.

Similarly, non-interest income increased to Rs 9,011.6 crore from Rs 6,288.6 crore YoY. Pre-provision operating profit of the bank rose by 14.7 % YoY to Rs 15,367.8 crores for Q1 FY23. Gross nonperforming assets (GNPA) were lower in Q1FY23 at 1.28% compared with 1.47% in Q1 FY22. However, it was higher than 0.32% reported in Q4FY22. Net non-performing assets (NNPA) of the lender dropped to 0.35% in Q1 FY23 as against 0.48% in Q1 FY22.

HDFC Bank registered a profit before tax (PBT) of ₹12,180.1 crores in the June quarter rising by 18.2% YoY. The bank reported total revenue growth of 13% to Rs 41,560.27 crore in June 2022 quarter as against Rs 36,771.47 crore in June 2021 quarter.

PPoP grew 1.5% YoY while declined by 6.0% QoQ at Rs. 15367.8 crores. Fee income for Q1FY23 stood at Rs. 53,30.4 crores while the loss on sale of investment stood at Rs. 1311.7 crores. Advances as of June 30, 2022, were reported at Rs. 1,39,5067.7 crores. The deposit growth for the quarter by 19.2% at Rs. 1,60,47,60 crores with a CASA ratio of 45.8%. Strong growth in advances was led by retail & commercial segments. There was a sequential deterioration in asset quality because of seasonal Agri NPAs.

The fee & commission segment grew 38.0% YoY and fell 4.8% QoQ. The sequential fall was owing to a high base of seasonally strong Q4FY22. The bank reported an MTM loss of Rs. 1311.7 crores due to a spike in the benchmark bond yields during the quarter. Excluding the MTM loss, the other income for the quarter grew 35.4% YoY. The operating expenses for the quarter grew 28.7% YoY due to the low base of last year on the back of lower activities during Covid-19.

Currently, the shares of HDFC Bank are trading at Rs. 1361.60 as compared to the previous close of Rs. 1365.05. The stock opened at Rs. 1360.55. The share price is down by 3.40 points or by 0.24%. The market cap is Rs. 756,409 crores.