HDFC Bank Net Profit rises 35.9 %

Udaipur : The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarterand nine months endedDecember 31, 2023, at its meeting held in Mumbai on Tuesday, January 16, 2024. The accounts have been subjected to a ‘Limited Review’ by the statutory auditors of the Bank.

CONSOLIDATED FINANCIAL RESULTS:

The Bank’s consolidated net revenue grew by 113.5% to ₹ 717.7billion for the quarter ended December 31, 2023 from ₹ 336.2billion for the quarter ended December 31, 2022. The consolidated profit after tax for the quarter ended December 31, 2023 was ₹172.6billion, up 35.9%, over the quarter ended December 31, 2022. Earnings per share for the quarter ended December 31, 2023was₹22.7and book value per share as of December 31, 2023 was ₹ 576.0.

The consolidated profit after taxfor the nine months ended December 31, 2023 was ₹ 464.4billion, up 39.0%, over the nine months ended December 31, 2022.

STANDALONE FINANCIAL RESULTS:

Profit & Loss Account: Quarter ended December 31, 2023

The Bank’s net revenue grew by 25.8% to ₹ 396.1billion for the quarter ended December 31, 2023 from ₹ 314.9billion for the quarter ended December 31, 2022.

Net interest income (interest earned less interest expended) for the quarter ended December 31, 2023 grew by 23.9% to ₹284.7billion from ₹ 229.9billion for the quarter ended December 31, 2022.Core net interest margin was at 3.4% on total assets, and 3.6% based on interest earning assets.

Other income (non-interest revenue) for the quarter ended December 31, 2023 was ₹ 111.4billion as against ₹ 85.0billion in the corresponding quarter ended December 31, 2022.The four components of other income for the quarter ended December 31, 2023 were fees & commissions of ₹ 69.4 billion (₹ 60.5 billion in the corresponding quarter of theprevious year), foreign exchange & derivatives revenue of ₹ 12.1 billion (₹ 10.7billion in the corresponding quarter of the previous year), net trading and mark to marketgain of ₹14.7billion (gain of ₹ 2.6 billion in the corresponding quarter of the previous year) and miscellaneous income, including recoveries and dividend, of ₹ 15.2 billion (₹ 11.1 billion in the corresponding quarter of the previous year).

Operating expenses for the quarter ended December 31, 2023were ₹159.6billion, anincrease of28.1% over ₹124.6billion during the corresponding quarter of the previousyear. Thecost-to-income ratiofor the quarterwas at 40.3%.

Pre-provision operating profit (PPOP) at ₹ 236.5billion grew by 24.3% over the corresponding quarter of the previous year.

Provisions and contingencies for the quarter ended December 31, 2023 were ₹ 42.2billion as against ₹ 28.1billion for the quarter ended December 31, 2022.Total provisions for the current quarter included contingent provisions of ₹ 12.2 billion.

The total credit cost ratio (excluding the contingent provisions mentioned above) was at 0.49%, as compared to 0.74% for the quarter ending December 31, 2022.

Profit before tax (PBT) for the quarter ended December 31, 2023 was at ₹ 194.3billion.After providing ₹30.6billion for taxation, the Bank earned a net profit of ₹163.7billion, an increase of 33.5% over the quarter ended December 31, 2022.

Balance Sheet: As of December 31, 2023

Total balance sheet size as of December 31, 2023was ₹34,926billion as against ₹22,953billion as of December 31, 2022.

Total Deposits were at ₹22,140billionas of December 31, 2023, an increase of 27.7% over December 31, 2022.CASA deposits grew by9.5% with savings account deposits at ₹5,799billion and current account deposits at ₹2,558billion.Time deposits were at ₹13,783billion, an increase of 42.1% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 37.7% of total deposits as of December 31, 2023.

Gross advances were at ₹ 24,693billionas of December 31, 2023, an increase of 62.4%over December 31, 2022. Grossing up for transfers through inter-bank participation certificates and bills rediscounted, advances grew by 60.7% over December 31, 2022. Domestic retail loans grew by111.1%, commercial and rural banking loans grew by 31.4% and corporate and other wholesale loans (excluding non-individual loans of eHDFC Ltd of approximately ₹989billion) grew by 11.2%.Overseas advances constituted 1.7% of total advances.