MUMBAI: HDFC Bank reported a net profit of Rs 15,976 crore for the September quarter – the first results after the merger with parent HDFC. The private bank had reported a standalone net profit of Rs 10,605 crore in the year-ago period, while its parent HDFC had reported a net profit of Rs 4,454 crore in the same period.
The bank’s consolidated net profit for the September quarter stood at Rs 16,811 crore. In the same period last year, its consolidated net profit stood at Rs 11,162 crore.
Finance Director Srinivasan Vaidyanathan said the second quarter 2024 results could not be compared with the combined results of the bank and the housing finance company from the previous year as both had different accounting policies. The bank’s margins also took a hit due to the additional resources the bank had to raise to facilitate financing merger.
The results, which were announced after the stock exchange, were better than expected. While the bank’s shares closed 0.5% lower at Rs 1,530 on the BSE, the American Depository Receipts traded almost 2% higher in the US markets after the results.
According to Vaidyanathan, the bank’s net interest margin fell to 3.4% post-merger from 4.1% earlier due to the different nature of HDFC and HDFC Bank’s businesses. Vaidyanathan said that while the bank provided a mix of secured and unsecured loans, HDFC’s business consisted of secured loans whose margins were lower.
Margins also came under pressure as the bank had taken on higher-cost liabilities from HDFC that would eventually be replaced by deposits, Vaidyanathan said.
The bank’s consolidated net profit for the September quarter stood at Rs 16,811 crore. In the same period last year, its consolidated net profit stood at Rs 11,162 crore.
Finance Director Srinivasan Vaidyanathan said the second quarter 2024 results could not be compared with the combined results of the bank and the housing finance company from the previous year as both had different accounting policies. The bank’s margins also took a hit due to the additional resources the bank had to raise to facilitate financing merger.
The results, which were announced after the stock exchange, were better than expected. While the bank’s shares closed 0.5% lower at Rs 1,530 on the BSE, the American Depository Receipts traded almost 2% higher in the US markets after the results.
According to Vaidyanathan, the bank’s net interest margin fell to 3.4% post-merger from 4.1% earlier due to the different nature of HDFC and HDFC Bank’s businesses. Vaidyanathan said that while the bank provided a mix of secured and unsecured loans, HDFC’s business consisted of secured loans whose margins were lower.
Margins also came under pressure as the bank had taken on higher-cost liabilities from HDFC that would eventually be replaced by deposits, Vaidyanathan said.
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