HDFC Bank Q1 Results: Profit surges 30% YoY to Rs 11,952 crore; NII jumps 21%

MUMBAI - HDFC Bank reported a 30% year-on-year (YoY) growth in net profit for the quarter ended June to Rs 11,952 crore, which was higher than an ET Now poll of Rs 11,000 crore.

The total income for the quarter increased 39% YoY to Rs 57,817 crore.

This is the first earnings of the bank following the merger with parent Housing Development Finance Corporation.

The net interest income – the difference between interest earned and interest expended – rose more than 21% YoY to Rs 23,599 crore.

The operating profit of the lender, before provisions and contingencies, increased 22% on year to Rs 18,772 crore.

The provisions for the quarter stood at Rs 2,860 crore, compared to Rs 3,188 crore a year ago.

The gross non-performing assets (NPA) as a percentage of total loans was 1.17% as of June end, compared to 1.12% a quarter ago and 1.28% a year ago.

The net NPA ratio was 0.30% as of June end, a tad higher than 0.27% a quarter ago, but lower than 0.35% in the year-ago period.

The capital adequacy ratio of the bank was 18.93% as of June end, compared to 19.26% a quarter ago. The core net interest margin was at 4.1% on total assets and 4.3% based on interest earning assets.

The cost-to-income ratio for the quarter was at 42.8%. The total credit cost ratio at 0.70%, was lower compared to 0.91% a year ago.

Balance Sheet Metrics
HDFC Bank’s total deposits saw a healthy growth of 19% YoY to Rs 19.13 lakh crore as of June end. The current account savings account (CASA) deposits grew by nearly 11% and made for 42.5% of the total deposits in the quarter.

The total advances grew nearly 16% over the last year to Rs 16.16 lakh crore, with domestic retail loans witnessing a strong 20% growth. Commercial and rural banking loans grew 29%, while corporate and other wholesale loans increased by 11.2%.

Shares of the bank held on to gains post earnings and were trading 1.2% higher at Rs 1,664.75 on the National Stock Exchange.