HDFC Bank Q1FY23 results: HDFC Bank, India’s largest private sector lender, reported a 19 percent year-on-year increase in net profit on Saturday to Rs 9,195.99 crore in the quarter ended June 30. Net profit was Rs 7,729.64 crore in the corresponding quarter last year.
HDFC Bank’s core revenues, excluding trading and market-to-market losses, rose 19.8 percent year-over-year to Rs 27,181.4 crore in June quarter FY23, compared to Rs 22,696.5 crore in June quarter FY22. Total net income (net interest income plus other income) was Rs 25,869.6 crore for the quarter under review.
Net interest income (NII) for the April-June quarter increased by 14.5 percent year-on-year to Rs 19,481.4 crore from Rs 17,009.0 crore in the same quarter last year. Core interest margin was 4 percent on total assets and 4.2 percent based on interest-bearing assets during Q1FY23. This was driven by 22.5 percent growth in advances, 19.2 percent growth in deposits and 20.3 percent growth in the total balance sheet.
On the other hand, non-interest income also rose to Rs 9,011.6 crore in Q1FY23 from Rs 6,288.6 crore in the same quarter last year. HDFC Bank further reported a 14.7 percent year-over-year increase in its pre-provisioning operating profit (PPOP) to Rs 15,367.8 crore for the quarter ended June 2022.
HDFC Bank has provisioned Rs 3,187.7 crore for the first quarter of the current fiscal year, down 34 percent from Rs 4,830.8 crore reported in the same quarter last year. The provision amounted to Rs 3,312.35 during the quarter ended March 2021.
HDFC Bank’s gross non-performing assets (GNPA) fell to 1.28 percent in the quarter, compared to 1.47 percent in Q1FY22. However, it rose 0.32 percent slightly from the quarter ended March 2022. Meanwhile, net non-performing assets (NNPA) declined 0.35 percent in Q1FY23, compared to 0.48 percent in Q1FY22. However, it was slightly higher than Q4FY22, when the bank posted 0.32 percent NNPA.
The total balance sheet size on June 30, 2022 was Rs 2,109,772 crore against Rs 1,753,941 crore on June 30, 2021, which is a growth of 20.3 percent. On the other hand, total deposits showed growth and stood at Rs 1,604,760 crore on June 30, 2022, an increase of 19.2 per year from the same quarter last year.
HDFC Bank grew its distribution networks in Q1FY23, with 6,378 branches and 18,620 ATMs/Cash Deposit and Withdrawal Machines (CDMs) in 3,203 cities and towns, compared to 5,653 branches and 16,291 ATMs/CDMs in 2,917 cities and towns in Q1FY22. Fifty percent of bank branches are located in rural and semi-urban areas. The number of employees at India’s largest private bank was 152,511 as of June 30, 2022, up from 123,473 as of June 30, 2021, the lender reported.
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