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Net Profit Jumps 19% to Rs 9196 Crore, NII Rises 14.5%; See Details

HDFC Bank Q1FY23 Results: HDFC Bank, India’s largest private sector lender, on Saturday reported a 19 per cent year-on-year jump in net profit to Rs 9,195.99 crore the quarter ended June 30. Net profit stood at Rs 7,729.64 crore in the corresponding quarter last year.

HDFC Bank’s core revenue, excluding trading and market-to-market losses grew by 19.8 per cent year-on-year to Rs 27,181.4 crore in June quarter FY23, compared to the Rs 22,696.5 crore in June quarter FY22. The total net revenues (net interest income plus other income) were Rs 25,869.6 crore for the quarter under review.

The Net Interest Income (NII), for the April-to-June quarter increased by 14.5 per cent year-on-year to Rs 19,481.4 crore from Rs 17,009.0 crore during the same quarter last year. Core interest margin was at 4 per cent on total assets and 4.2 per cent based on interest earning assets during Q1FY23. This was driven by advances growth of 22.5 per cent, deposits growth of 19.2 per cent and total balance sheet growth of 20.3 per cent.

On the other hand, non interest income also increased to Rs 9,011.6 crore in Q1FY23 from Rs 6,288.6 crore during the same quarter last year. HDFC Bank further reported a rise in its pre-provision operating profit (PPOP) by 14.7 per cent on a year-on-year basis to Rs 15,367.8 crore for the quarter ended June 2022.

HDFC Bank made provisions worth Rs 3,187.7 crore for the first quarter of the current financial year, down by 34 per cent from Rs 4,830.8 crore that was reported during the same quarter last year. The provision was Rs 3,312.35 during the quarter ended in March 2021.

Gross non performing assets (GNPA) of the HDFC Bank came down in this quarter at 1.28 per cent as compared with 1.47 per cent in Q1FY22. However, it rose slightly by 0.32 per cent from the quarter ended March 2022. Meanwhile, the Net non performing assets (NNPA) slumped by 0.35 per cent in Q1FY23 when compared to 0.48 per cent in Q1FY22. However, it was a bit higher than that of Q4FY22, when the bank had posted 0.32 per cent NNPA.

Total balance sheet size as of June 30, 2022 was Rs 2,109,772 crore as against Rs 1,753,941 crore as of June 30, 2021, which is a growth of 20.3 per cent. On the other hand, the total deposits showed a growth and were at Rs 1,604,760 crore as of June 30 2022, making an increase of 19.2 per over the same quarter last year.

HDFC Bank posted a growth in its distribution networks in Q1FY23, with 6,378 branches and 18,620 ATMs/ cash deposit and withdrawal machines (CDMs) across 3,203 cities and towns as against 5,653 branches and 16,291 ATMs/ CDMs across 2,917 cities and towns in Q1FY22. Fifty per cent of the bank’s branches are in rural and semi0urban areas. Number of employees at the India’s largest private sector bank were at 152,511 as of June 30, 2022 as against 123,473 as of June 30, 2021, the lender reported.

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