HDFC Bank reports 30% increase in Q1 net profit at Rs 11,952 cr, loans grow

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HDFC Bank said on Monday that its net profit grew by 30 percent year-on-year to Rs.11,952 crore in the April-June period, supported by loan growth and treasury gains.

Net interest income (interest earned minus interest disbursed) for the quarter grew by 21.1 percent, India’s largest private lender said in a statement. The underlying net interest margin was 4.1 percent on total assets and 4.3 percent on the basis of interest-earning assets.

Other income, or non-interest income, was Rs.9,230 crore compared to Rs.6,388 crore in the same period in the previous financial year.

Other income was boosted by a trading gain of Rs.552 crore in the first quarter as compared to a loss of Rs.1077 crore in the same period last year.

Other income, excluding net trading and market income, grew by 16.2 percent during the quarter ended June 30, 2022.

Provisions and contingencies for the quarter ended 30th June 2023 were Rs.2860 crore compared to Rs.3188 crore for the quarter ended 30th June 2022.

The total cost of credit ratio was 0.70 percent, compared to 0.91 percent for the quarter ending June 30, 2022.

Total deposits grew by 19.2 percent to 19.13 trillion rupees while current and savings account deposits grew by 10.7 percent, and current and savings account deposits accounted for 42.5 percent of total deposits as of June 30, 2023.

Advances as of 30 June 2023 totaled Rs.16,15,672 crore, an increase of 15.8% over 30 June 2022. Domestic retail loans grew by 20.0%, commercial and rural bank loans grew by 29.1% and corporate and other loans. Wholesale loans rose 11.2%. External loans accounted for 2.6% of the total advances.

Non-performing assets totaled 1.17 percent of total advances as at June 30, 2023 (0.94 percent excluding NAPs in the agricultural sector), compared to 1.12 percent as at March 31, 2023 (0.94 percent excluding NAPs in the Agriculture part), and 1.28 percent as at June 30, 2022 (1.06 percent excluding NAPs in the agricultural sector). Net non-performing assets amounted to 0.30 per cent of net advances as on June 30, 2023.