|
HDFC Bank has net profit for
the merged entity post merger of HDFC at Rs 15976.11 crore for the quarter
ended September 2023 (Q2FY2024). The Net Interest Margin (NIM) of the bank dipped
to 3.40% in Q2FY2024 compared to 4.10% in the corresponding quarter of previous
year due to excess liquidity maintained at the timing of merger to meet various
regulatory requirements. However, the core fee income of the bank improved 20% in
Q2FY2024.
On business front, the bank as has
posted healthy 4.9% growth in the advances on sequential quarter basis for the
merged entity in Q2FY2023. The asset quality of the bank was nearly stable in
Q2FY2024. The credit to deposit ratio of the bank has jumped to 108.4% at end
September 2023 from 89.2% at end September 2022. The CASA ratio of the bank has
declined to 37.6% at end September 2023 from 45.4% at end September 2022.
Asset quality stable: The bank has maintained stable asset
quality in Q2FY2024.
The GNPA ratio for the merged entity
has declined to 1.34% end September 2023 from 1.4% at the beginning of merger.
NNPA ratio has also declined to 0.34% from 0.4%
The fresh slippages of loans stood at
Rs 7800 crore for the merged entity in Q2FY2024 compared with pre-merger level
of Rs 5800 crore in previous quarter and Rs 5700 crore in the corresponding
quarter last year.
The recoveries and upgradations of NPAs
stood at Rs 4500 crore, while the write-off of loans was at Rs 3250 crore in
Q2FY2024.
Provision coverage ratio was steady at 74.00%
at end September 2023 compared to 75.00% a quarter ago and 73.00% a year ago.
The capital adequacy ratio of the bank
stood at 19.5% with Tier I ratio at 17.8% at end September 2023.
|
Asset Quality
Indicators: HDFC Bank
|
|
|
Sep-23
|
Jun-23
|
Mar-23
|
Dec-22
|
Sep-22
|
Variation $
|
|
QoQ
|
YTD
|
YoY
|
|
Gross NPA (Rs Crore)
|
31577.89
|
19064.12
|
18019.03
|
18763.90
|
18301.00
|
|
|
|
|
Net NPA (Rs Crore)
|
8072.79
|
4776.87
|
4368.43
|
5024.27
|
4882.67
|
|
|
|
|
% Gross NPA
|
1.34
|
1.17
|
1.12
|
1.23
|
1.23
|
|
|
|
|
% Net NPA
|
0.35
|
0.30
|
0.27
|
0.33
|
0.33
|
|
|
|
|
% PCR
|
74.00
|
75.00
|
76.00
|
73.00
|
73.00
|
|
|
|
|
% CRAR - Basel III
|
19.54
|
18.93
|
19.26
|
17.66
|
16.92
|
|
|
|
|
% CRAR - Tier I - Basel III
|
17.80
|
16.90
|
17.10
|
17.20
|
16.30
|
|
|
|
|
Variation in basis points
for figures given in percentages and in % for figures in Rs crore
$ figures for
September 2023 related to merged entity and are not comparable with earlier
period
|
Business Highlights:
Healthy business growth: The business of the bank has increased
to Rs 4527491 crore end September 2023, driven by advances rising to Rs 2354633
crore and deposits gaining to Rs 2172858 crore at end September 2023.
CASA deposits ratio declines: The CASA deposits of the bank rose 8% YoY
to Rs 817705 crore at end September 2023. The current account deposits increased
14% to Rs 247749 crore, while saving account deposits increased 9% to Rs 569956
crore end September 2023.
However, the CASA ratio declined for
the merged entity to 37.6% at end September 2023 compared to 45.4% at end
September 2022, while declined from 42.5% a quarter ago due to addition of
deposits of HDFC. The term deposits have increased to Rs 1355153 crore end
September 2023.
Healthy loan growth: The retail
advances post merger have
increased to Rs 1199505 crore at end September 2023. The credit to agriculture
increased 29% to Rs 90487 crore and MSME 30% to Rs 614728 crore at end
September 2023. The corporate credit rose at slower pace of 8% to Rs 428109 crore
end September 2023. The overseas credit has declined 14% to Rs 40029 crore end
September 2023. The non-retail loans of HDFC eased to Rs 102755 crore end
September 2023 from Rs 109271 crore end June 2023.
Investment book of the bank rose to Rs 723436 crore at end September 2023.
Margins dips: NIM has dipped 70 bps YoY to 3.40% in
Q2FY2023. Core net interest margin for the quarter was 3.65% on total assets and
3.85% on interest earning assets. After absorbing debt funded cost for
additional liquidity and merger management, the reported NIM for the quarter is
3.4% on total assets and 3.6% on interest earning assets.
Branch expansion: The bank has added 85 branches and 244 ATMs
in Q2FY2024. Bank’s distribution network was at 7945 branches and 20596 ATMs across 3836
cities / towns. Bank has 15352 business correspondents, which are primarily
manned by Common Service Centres (CSC). The number of employees were at 197899 end
September 2023 (as against 161027 end September 2022).
Book value of the bank stood at Rs 534.2 per share
at end September 2023, while the adjusted book value (net of NNPA and 10% of
restructured advances) was Rs 522.8 per share at end September 2023.
Quarterly Performance
NII impacted due to excess liquidity: Bank has recorded interest income of Rs
67698.39 crore, while interest expenses were at Rs 40313.16 crore in Q2FY2024. NII
came in at Rs 27385.23 crore in the quarter ended September 2023.
Healthy growth in the core fee income: Bank has posted strong 20% growth in
core fee income to Rs 6936 crore, while the recoveries and other income jumped 38%
to Rs 1510 crore and forex income 13% to Rs 1221 crore. Further, the treasury
income rebounded to Rs 1041 crore, leading to 41% surge in the overall
non-interest income to Rs 10707.84 crore in the quarter ended September 2023.
Expenses ratio rises: The operating expenses of the bank
increased to Rs 15399.19 crore, as other expenses moved up to Rs 10229 crore
and employee expenses increased to Rs 5170.19 crore in Q2FY2024. Cost to income
ratio was at 40.4% in Q2FY2024 compared with 39.2% in Q2FY2023
The Operating Profit increased to Rs 22693.88
crore in Q2FY2024.
Provisions and contingencies declines: The bank has decline in provisions to
Rs 2903.83 crore. The loan loss provisions were Rs 2500 crore and other provisions
were Rs 400 crore. The total credit cost ratio was at 0.49%, as compared to 0.87% for Q2FY2023.
Effective tax rate declined to
19.3% in Q2FY2024 from 25.1% in
Q2FY2023. Net Profit came in at Rs 15976.11 crore during quarter ended
September 2023.
CONSOLIDATED FINANCIAL RESULTS:
The Bank’s consolidated net revenue grew to Rs 66317 crore for Q2FY2024.
The consolidated profit after tax for Q2FY2024 was Rs 16811 crore. The book
value per share end September 2023 was Rs 552.5. The consolidated profit after
tax for H1FY2024 was Rs 29182 crore.
SUBSIDIARIES
HDB Financial Services (HDBFSL), in which the Bank holds an 94.8% stake, is a
non-deposit taking NBFC offering wide a range of loans and asset finance
products. For Q2FY2024, HDBFSL’s net revenue was at Rs 2357 crore as against Rs
2201 crore for Q2FY2023, a growth of 7.1%. Profit after tax for Q2FY2024 was Rs
601 crore compared to Rs 471 crore for Q2FY2023, a growth of 27.5%. Profit
after tax for H1FY2024 was Rs 1168 crore compared to Rs 913 crore for H1FY2023.
The total loan book was Rs 77857 crore end September 2023 compared to Rs 63112 crore
end September 2022, a growth of 23.4%. Stage 3 loans were at 2.38% of gross
loans. End September 2023, total CAR was at 19.4% with Tier-I CAR at 15.7%.
HDFC Life Insurance Company (HDFC Life), in which the
Bank holds a 50.4% stake, is a leading, long-term life insurance solutions
provider in India. For Q2FY2024, HDFC Life’s net premium income was at Rs 14756
crore as against Rs 13111 crore for Q2FY2023, a growth of 12.5%. Profit after
tax for Q2FY2024 was Rs 377 crore compared to Rs 326 crore for Q2FY2023, a
growth of 15.5%. Profit after tax for H1FY2024 was Rs 792 crore compared to Rs
686 crore for H1FY2023.
HDFC ERGO General Insurance Company (HDFC ERGO), in which the
Bank holds a 50.5% stake, offers a complete range of general insurance
products. For Q2FY2024, premium earned (net) by HDFC ERGO was at Rs 2592 crore
as against Rs 2118 crore for Q2FY2023, a growth of 22.4%. Profit after tax for
Q2FY2024 was Rs 236 crore compared to Rs 177 crore for Q2FY2023, a growth of
33.1%. Profit after tax for H1FY2024 was Rs 436 crore compared to Rs 321 crore
for H1FY2023.
HDFC Asset Management Company (HDFC AMC), in which the
Bank holds a 52.6% stake, is the Investment Manager to HDFC Mutual Fund, one of
the largest mutual funds in India and offers a comprehensive suite of savings
and investment products. For Q2FY2024, HDFC AMC’s Quarterly Average Assets
Under Management were approximately Rs 5.25 lakh crore, a growth of 22.2% over
Q2FY2023. Profit after tax for Q2FY2024 was Rs 438 crore compared to Rs 364
crore for Q2FY2023, a growth of 20.2%. Profit after tax for H1FY2024 was Rs 915
crore compared to Rs 678 crore for H1FY2023.
HDFC Securities (HSL), in which the Bank holds a 95.5% stake, is amongst
the leading broking firms in India. For Q2FY2024, HSL’s total revenue was Rs
603 crore, as against Rs 468 crore for Q2FY2023. Profit after tax for the
quarter was at Rs 214 crore, as against Rs 191 crore for Q2FY2023. Profit after
tax for H1FY2024 was Rs 404 crore compared to Rs 380 crore for H1FY2023.
Financial Performance H1FY2024:
Bank has posted net profit of Rs 27927.88
crore in the half year ended September 2023 (H1FY2024). The net interest income
increased to Rs 50984.30 crore, while non-interest income moved up to Rs 19937.70
crore, pushing up net total income to Rs 70922.00 crore in H1FY2024. The
operating expenses increased to Rs 29456.10 crore, while provision and
contingencies declined to Rs 5763.86 crore, allowing profit before tax to
increase to Rs 35702.04 crore in H1FY2024. The cost-to-income ratio increased to
41.5% in H1FY2024 compared to 39.9% in H1FY2023. An effective tax rate declined
to 21.8% in H1FY2024 compared to 24.8% in H1FY2023. The net profit has
increased to Rs 27927.88 crore in H1FY2024.
|
HDFC Bank: Results
|
|
Particulars
|
2309 (3)
|
2209 (3)
|
Var %$
|
2309 (6)
|
2209 (6)
|
Var %$
|
2303 (12)
|
2203 (12)
|
Var %
|
|
Interest Earned
|
67698.39
|
38586.38
|
|
116285.20
|
73758.42
|
|
161585.55
|
127753.11
|
26
|
|
Interest Expended
|
40313.16
|
17565.22
|
|
65300.90
|
33255.84
|
|
74743.31
|
55743.54
|
34
|
|
Net Interest Income
|
27385.23
|
21021.16
|
|
50984.30
|
40502.58
|
|
86842.24
|
72009.57
|
21
|
|
Other Income
|
10707.84
|
7595.58
|
|
19937.70
|
13983.81
|
|
31214.83
|
29509.90
|
6
|
|
Net Total Income
|
38093.07
|
28616.74
|
|
70922.00
|
54486.39
|
|
118057.07
|
101519.47
|
16
|
|
Operating Expenses
|
15399.19
|
11224.57
|
|
29456.10
|
21726.38
|
|
47652.09
|
37442.19
|
27
|
|
Operating Profits
|
22693.88
|
17392.17
|
|
41465.90
|
32760.01
|
|
70404.98
|
64077.28
|
10
|
|
Provisions & Contingencies
|
2903.83
|
3240.13
|
|
5763.86
|
6427.86
|
|
11919.67
|
15061.83
|
-21
|
|
Profit Before Tax
|
19790.05
|
14152.04
|
|
35702.04
|
26332.15
|
|
58485.31
|
49015.45
|
19
|
|
EO
|
0.00
|
0.00
|
|
0.00
|
0.00
|
|
0.00
|
0.00
|
-
|
|
PBT after EO
|
19790.05
|
14152.04
|
|
35702.04
|
26332.15
|
|
58485.31
|
49015.45
|
19
|
|
Provision for tax
|
3813.94
|
3546.26
|
|
7774.16
|
6530.38
|
|
14376.60
|
12054.12
|
19
|
|
PAT
|
15976.11
|
10605.78
|
|
27927.88
|
19801.77
|
|
44108.71
|
36961.33
|
19
|
|
EPS*(Rs)
|
84.3
|
56.0
|
|
73.67
|
52.24
|
|
58.18
|
48.75
|
|
|
Adj BV (Rs)
|
522.9
|
445.8
|
|
522.9
|
445.8
|
|
493.3
|
422.6
|
|
|
* Annualized on current equity
of Rs 753.76 crore. Face Value: Rs 1, Figures in Rs crore
Figures for 2309 (3) relates to
merged entity and are not comparable with earlier periods
|
|
Source: Capitaline Corporate
Database
|
|