HDFC Bank Q3 Reports FY 2023-2024

Financial Results – HDFC Bank Limited (Indian GAAP) – Quarter and Nine Months Ended December 31, 2023

Board Approval

– The Board of Directors of HDFC Bank Limited sanctioned the Bank’s (Indian GAAP) results for Q3 and the nine months ending December 31, 2023, in a meeting held in Mumbai on January 16, 2024.

– The accounts underwent a ‘Limited Review’ by the Bank’s statutory auditors.

Additional Read: Q3 Results Dashboard

Consolidated Financial Results (Q3 – December 31, 2023)

1. Consolidated net revenue surged by 113.5% to ₹717.7 billion compared to ₹336.2 billion in Q3 2022.

2. Profit after tax for Q3 2023 reached ₹172.6 billion, a notable 35.9% increase from Q3 2022.

3. Earnings per share for Q3 2023 stood at 22.7, while book value per share as of December 31, 2023, was 576.0.

Consolidated Financial Results (Nine Months Ended December 31, 2023)

– Consolidated profit after tax for the nine months ending December 31, 2023, was ₹464.4 billion, showcasing a growth of 39.0% over the same period in 2022.

Additional Read: HDFC Bank Share Price

Standalone Financial Results (Q3 – December 31, 2023)

1. Net revenue increased by 25.8% to ₹396.1 billion compared to ₹314.9 billion in Q3 2022.

2. Net interest income for Q3 2023 grew by 23.9% to ₹284.7 billion.

3. Other income for Q3 2023 amounted to ₹111.4 billion, driven by various components including fees & commissions, foreign exchange & derivatives revenue, net trading gains, and miscellaneous income.

4. Operating expenses for Q3 2023 reached ₹159.6 billion, with a cost-to-income ratio of 40.3%.

5. Pre-provision operating profit (PPOP) for Q3 2023 was ₹236.5 billion, marking a 24.3% growth.

6. Provisions and contingencies for Q3 2023 amounted to ₹42.2 billion, with a total credit cost ratio of 0.49%.

Balance Sheet (As of December 31, 2023)

1. Total balance sheet size increased to ₹34,926 billion from ₹22,953 billion as of December 31, 2022.

2. Total Deposits reached ₹22,140 billion, showing a 27.7% increase over December 31, 2022.

3. Gross advances were ₹24,693 billion, marking a substantial 62.4% growth over December 31, 2022.

Loan Portfolio Growth (Nine Months Ended December 31, 2023)

– Domestic retail loans surged by 111.1%, commercial and rural banking loans by 31.4%, and corporate and other wholesale loans grew by 11.2%. Overseas advances constituted 1.7% of total advances.

Nine Months Ended December 31, 2023

– Total income reached ₹2,179.4 billion, a significant increase from ₹1,389.5 billion in the corresponding period of the previous year.

– Net revenues for the period were ₹1,105.3 billion, up from ₹860.0 billion in the same period of 2022.

– Profit after tax for the nine months ended December 31, 2023, amounted to ₹443.0 billion, indicating a growth of 38.2%.

Capital Adequacy

– Total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 18.4% as of December 31, 2023.

– Tier 1 CAR stood at 16.8%, and Common Equity Tier 1 Capital ratio was at 16.3%.

– Risk-weighted Assets were at ₹23,865 billion.

Network (As of December 31, 2023)

– Distribution network comprised 8,091 branches and 20,688 ATMs across 3,872 cities/towns.

– 52% of branches were located in semi-urban and rural areas.

– 15,053 business correspondents were primarily manned by Common Service Centres (CSC).

– Total employees numbered 208,066 as of December 31, 2023.

Asset Quality (As of December 31, 2023)

– Gross non-performing assets were at 1.26% of gross advances.

– Net non-performing assets were at 0.31% of net advances.

Subsidiaries

– Key subsidiaries like HDFC Life Insurance and HDFC ERGO General Insurance reported results in accordance with Indian GAAP.

– HDB Financial Services Ltd, in which the Bank holds a 94.7% stake, exhibited growth in net revenue, profit after tax, and total loan book.

– HDFC Life and HDFC ERGO, in which the Bank holds significant stakes, demonstrated growth in total premium income and profit after tax for the quarter and nine months ending December 31, 2023.

About HDFC Bank

HDFC Ltd, a pioneer in India’s financial sector, received “in principle” approval from the Reserve Bank of India in 1994 to establish a private sector bank, aligning with the RBI’s liberalisation policy. HDFC Bank, officially incorporated in August 1994, began its operations as a Scheduled Commercial Bank in January 1995, with headquarters in Mumbai.

On April 4, 2022, the merger of HDFC Limited, India’s largest Housing Finance Company with a stellar 45-year track record, and HDFC Bank, the largest private sector bank, was announced. HDFC Ltd’s extensive product offerings have made it a leader in housing finance, seamlessly integrated into HDFC Bank’s diverse product suite for urban, semi-urban, and rural India.

As of September 30, 2023, HDFC Bank boasts a vast distribution network with 7,945 branches and 18,183 ATMs/Cash Recycler Machines in 2,488 cities/towns. HDFC Ltd.’s distribution network, including 737 outlets and 214 offices of HDFC Sales Private Limited, has been amalgamated into the bank’s network. The international presence extends to branches in four countries and representative offices in Dubai, London, and Singapore, offering Home Loan products to Non-Resident Indians and Persons of Indian Origin.

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Source:

https://www.bseindia.com/xml-data/corpfiling/AttachLive/408833e3-1ae7-46fb-ae25-5ef51a7ca824.pdf