HDFC Bank Q1 Results: HDFC Bank Q1 net profit rises 30% YoY to ₹11,952 crore; NII jumps 21%

HDFC Bank, the largest private lender in the country, reported a standalone net profit of ₹11,951.7 crore for the quarter ended June 2023, registering a growth of 30% from ₹9,196 crore in the same quarter last year.

The bank's net interest income (NII) during Q1FY24 increased 21.1% to ₹23,599.1 crore from ₹19,481.4 crore, YoY.

Core interest margin was at 4.1% on total assets, and 4.3% based on interest earnings assets, the HDFC Bank said.

Pre-provision operating profit (PPOP) in Q1FY24 grew by 22.2% to ₹18,772 crore from ₹15,367.84 crore in the corresponding quarter of the previous year.

Provisions and contingencies for the quarter ended June 30, 2023, were at ₹2,860 crore as against ₹3,188 crore, YoY.

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HDFC Bank's asset quality declined sequentially during the quarter ended June 2023. Its Gross non-performing assets (NPA) increased 5.7% to ₹19,045.1 crore from ₹18,019 crore, while Net NPA rose 9.4% to ₹4,776.9 crore from ₹4.368.4 crore, QoQ.

Gross NPA ratio in Q1FY24 stood rose 5 basis points to 1.17% from 1.12%, and Net NPA ratio inched up by 3 bps to 0.30% from 0.27%, QoQ.

HDFC Bank's total deposit showed a healthy growth and were at ₹19,13,096 crore as of June 30, 2023, an increase of 19.2% over June 30, 2022. 

This is HDFC Bank's first earnings after its merger with parent Housing Development Finance Corporation (HDFC).

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CASA deposits grew by 10.7% with savings account deposits at ₹5,60,604 crore and current account deposits at ₹2,52,350 crore. Time deposits were at ₹11,00,142 crore, an increase of 26.4% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 42.5% of total deposits as of June 30, 2023, the bank said in a release.

Total advances as of June 30, 2023 were ₹16, 15,672 crore, an increase of 15.8% over June 30, 2022.

HDFC Bank's total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 18.9% as on June 30, 2023, as compared to 18.1% as on June 30, 2022. Tier 1 CAR was at 16.9% and Common Equity Tier 1 Capital ratio was at 16.2% as of June 30, 2023.

At 1:15 pm, the shares of HDFC Bank were trading 1.12% higher at ₹1,663.60 apiece on the BSE.