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HDFC Bank reported a 19 per cent year-on-year (y-o-y) increase in the first quarter standalone net profit at ₹9,196 crore against ₹7,730 crore in the year-ago period on the back of healthy growth in net interest income and a decline in loan loss provisions.
Net interest income (difference between interest earned and interest expended) rose about 14.5 per cent y-o-y to ₹19,481 crore (₹17,009 crore in the year-ago quarter).
Other income, which includes commission income from non-fund-based banking activities, fees, earnings from foreign exchange and derivative transactions, profit/loss from investments, dividends from subsidiaries, and recoveries from accounts previously written off, nudged up about 1.60 per cent y-o-y to ₹6,388 crore (₹6,288.50 crore).
Provisions (other than tax) and contingencies declined 34 per cent y-o-y to ₹3,188 crore (₹4,831 crore). Gross non-performing assets (GNPAs) increased by ₹1,893 crore during the quarter to stand at ₹18,034 crore as at June-end 2022.
GNPAs edged up to 1.28 per cent of gross advances as at June-end 2022 against 1.17 per cent as at March-end 2022. Net NPAs inched up to 0.35 per cent of net advances against 0.32 per cent.
The bank’s core net interest margin declined a shade to 4 per cent of total assets against 4.1 per cent in the year-ago quarter. The total credit cost ratio was lower at 0.91 per cent as compared to 1.67 per cent for the quarter ending June 30, 2021.
Total balance sheet
The total balance sheet size as of June 30, 2022, was ₹21,09,772 crore against ₹17,53,941 crore — a growth of 20.3 per cent over June 30, 2021. Total advances as of June 30, 2022, stood at ₹13,95,068 crore, an increase of 21.6 per cent over June 30, 2021.
As per the bank’s internal business classification, retail loans grew by 21.7 per cent, commercial and rural banking loans grew by 28.9 per cent and corporate and wholesale loans grew by 15.7 per cent. Overseas advances constituted 3.5 per cent of total advances.
Total deposits as of June 30, 2022, stood at ₹16,04,760 crore, an increase of 19.2 per cent over June 30, 2021. CASA deposits comprised 45.8 per cent of total deposits against 45.5 per cent as of June 30, 2021.
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