Table of Content
Highlights of the HDFC Bank Results
HDFC Bank has declared its Q2 quarterly results with the following highlights:
- Net Revenue grew by 114.8% YoY to ₹66,317 Cr
- Net consolidated profit rose to ₹16,811 Cr.
- Total Capital Adequacy Ratio (CAR) was at 19.5%
- Consolidated EPS is ₹22.2 per share
Additional Read: Q2 Results Dashboard
HDFC Bank’s Strong Performance in Q2FY24
HDFC Bank exceeded most market expectations with a consolidated profit before tax of ₹20,967 Cr and a net profit after tax of ₹16,811 Cr. Operating expenses for the quarter stood at ₹42,038 Cr which was a mammoth 177.0% higher than Q1 of the same financial higher. However, the high expenses were offset by a 89.1% QoQ jump in net revenues which was reported to be ₹66,317 Cr.
Additional Read: HDFC Bank Share Price
Standalone Performance
HDFC Bank’s deposits reached ₹21.73 lakh crore as of September 30, 2023, reflecting a 29.9% increase from ₹16.73 lakh crore as of September 30, 2022. In Q2FY24, current account and savings account (CASA) deposits increased by 7.6% to around ₹8.17 lakh crore from ₹7.59 lakh crore the previous year, with a CASA ratio of 37.6%, down from 45.4% last year.
Return on Assets for the period ending 30 Sep, 2023 stood at 2.0% with a Gross NPA of 1.34%. The Cost-to-income ratio is a healthy 40.4% and Capital adequacy ratio is 19.5%.
Future Outlook
As per industry experts, while the sequential loan growth has been decent, Net Interest Income (NII) growth is expected to be slower in the future due to deposit cost adjustments and excess liquidity, resulting in a lower Net Interest Margin (NIM) sequentially. Fee income growth in Q3 is expected align with loan growth while operating expenses will slightly lag. Slippages are expected to remain stable on a sequential basis, and provisions may also remain stable due to prudent provisioning.
About the Company
HDFC Ltd was one of the early Indian financial institutions to receive “in principle” approval from the Reserve Bank of India (RBI) in 1994, under the RBI’s liberalisation policy, to establish a private sector bank. In August 1994, HDFC Bank Limited was incorporated with its registered office in Mumbai, India, and it began operating as a Scheduled Commercial Bank in January 1995.
By August 31, 2023, HDFC Bank’s extensive distribution network encompassed 7,915 branches and 20,565 ATMs/Cash Recycler Machines in 3,825 cities and towns. The distribution network of HDFC Ltd., including 737 outlets, which incorporates 214 HDFC Sales Private Limited offices, has been merged into the Bank’s network. Furthermore, the bank maintains an international presence with branches in four countries and three representative offices in Dubai, London, and Singapore, offering Home Loan products to Non-Resident Indians and Persons of Indian Origin.
- HDFC Bank subsidiaries include:
- HDB Financial Services
- HDFC Life Insurance
- HDFC AMC
- HDFC ERGO General Insurance
- HDFC Securities
Financial Results
HDFC Life Insurance Company posted a consolidated net profit of ₹378 crore in the second quarter of FY24, marking a 15% increase. The bank’s gross advances also surged by an impressive 57.7% to reach ₹23.54 lakh crore, up from ₹14.93 lakh crore in the previous year. The bank’s domestic retail loans experienced remarkable year-on-year (YoY) growth of approximately 111.5%, while commercial and rural banking loans grew by approximately 29.5% YoY, and corporate and other wholesale loans saw an 8% YoY increase, according to a regulatory filing on October 4. Additionally, following the merger with parent company HDFC Ltd, HDFC Bank reported its highest-ever home loan disbursals of around ₹48,000 crore.
Financial Statements — Details
| Metrics | Q2 FY 2022-2023 | Q2 FY 2023-2024 |
|---|---|---|
| Net Interest Income | ₹ 21,021.2 cr | ₹ 22,619.00 cr |
| Net Profit | ₹ 10,605.78 cr | ₹15,976.11 cr |
| Total Deposits | ₹ 16,73,408 cr | ₹ 21,72, 858 cr |
| PPOP | ₹ 17,392 cr | ₹ 22,694 cr |
Source:
- https://www.hdfcbank.com/personal/about-us/overview/who-we-are
- HDFC Q2 results
