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HDFC Bank has reported 2%
qoq growth in net profit at Rs 16372.54 crore for the quarter ended December
2023 (Q3FY2024). The net interest margins of the remained stable on sequential
basis at 3.4% in Q3FY2024, while eased from pre-merger level of 4.1% in
Q3FY2023. The core fee income of the bank improved was steady sequentially, while improved 15% yoy in Q3FY2024.
On business front, the bank as has
posted 3% qoq growth in business with strong 5% surge in loan book. The asset
quality of the bank has improved in Q3FY2024. The credit to deposit ratio was
higher at 111.5% at end December 2023 from 87.7% at end December 2022. The CASA
ratio of the bank has improved on sequential basis to 37.7% at end December 2023
from 37.6% at end September 2023.
Asset quality improves: The bank has improved asset quality with
decline in fresh slippages of loans in Q3FY2024.
The fresh slippages of loans declined
to Rs 7000 crore in Q3FY2024 compared with 7800 crore in previous quarter and
Rs 6600 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 3100 crore in
Q3FY2024.
Provision coverage ratio rose to 75.00%
at end December 2023 compared to 74.00% a quarter ago and 73.00% a year ago.
The capital adequacy ratio of the bank
stood at 18.4% with Tier I ratio at 16.8% at end December 2023.
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Asset Quality
Indicators: HDFC Bank
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|
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Dec-23
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Sep-23
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Jun-23
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Mar-23
|
Dec-22
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Variation
|
|
QoQ
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YTD $
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YoY $
|
|
Gross NPA (Rs Crore)
|
31011.67
|
31577.89
|
19064.12
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18019.03
|
18763.90
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-2
|
|
|
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Net NPA (Rs Crore)
|
7664.10
|
8072.79
|
4776.87
|
4368.43
|
5024.27
|
-5
|
|
|
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% Gross NPA
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1.26
|
1.34
|
1.17
|
1.12
|
1.23
|
-8
|
|
|
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% Net NPA
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0.31
|
0.35
|
0.30
|
0.27
|
0.33
|
-4
|
|
|
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% PCR
|
75.00
|
74.00
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75.00
|
76.00
|
73.00
|
100
|
|
|
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% CRAR - Basel III
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18.39
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19.54
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18.93
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19.26
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17.66
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-115
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|
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% CRAR - Tier I - Basel III
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16.80
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17.80
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16.90
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17.10
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17.20
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-100
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|
|
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
$ figures for
December 2023 related to merged entity and are not comparable with earlier
period
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Business Highlights:
Business growing sequentially: The business of the bank has increased
3% qoq to Rs 4683277 crore end December 2023, driven by 5% qoq surge in
advances to Rs 2469300 crore. Deposits rose 2% qoq to Rs 2213977 crore at end
December 2023.
CASA deposits ratio improves: The CASA deposits of the bank rose 2%
qoq to Rs 835700 crore at end December 2023. The current account deposits increased
3% qoq to Rs 255800 crore, while saving account deposits increased 2% qoq to Rs
579900 crore end December 2023. The CASA ratio rose to 37.7% at end December
2023 compared to 37.6% a quarter ago. The term deposits have increased 2% qoq to
Rs 1378277 crore end December 2023.
Healthy loan growth: Advances growth was driven by retail
loans rising 3% qoq to Rs 1218900 crore at end December 2023, while credit to
agriculture also increased 3% to Rs 93000 crore and MSME 31% to Rs 680100 crore
at end December 2023. The corporate credit rose 2% to Rs 436300 crore end
December 2023. The overseas credit has jumped 51% qoq to Rs 41978 crore end
December 2023.
Investment book of the bank declined 7%
qoq to Rs 674931 crore at end December 2023.
Margins stable: The bank has showed 10 bps qoq jump in
cost of fund to 4.9%, while yield on advances increased 10 bps qoq to 8.3% in
Q3FY2024. Thus, the NIM has remained steady on sequential basis at 3.4%.
Branch expansion: The bank has added 146 branches and 92 ATMs
in Q3FY2024. Bank’s distribution network was at 8,091 branches and 20,688 ATMs
across 3,872 cities / towns end December 2023 as against 7,183 branches and
19,007 ATMs across 3,552 cities / towns end December 2022. About 52% of
branches are in semi-urban and rural areas. In addition, the bank has 15,053
business correspondents, which are primarily manned by Common Service Centres
(CSC). The number of employees were at 2,08,066 end December 2023 (as against
1,66,890 end December 2022).
Book value of the bank stood at Rs 556.2 per share
at end December 2023, while the adjusted book value (net of NNPA and 10% of
restructured advances) was Rs 545.5 per share at end December 2023.
Quarterly Performance
NII rises on stable NIM: Bank has recorded 4% increase in the
interest earned at Rs 70582.61 crore, while interest expenses increased 4% to
Rs 42111.27 crore in Q3FY2024. NII improved 4% to Rs 28471.34 crore in the
quarter ended December 2023.
Steady core fee income: Bank has posted was steady qoq at Rs 6940
crore, while the recoveries and other income rose 1% to Rs 1520 crore and treasury
income surged 41% to Rs 1470 crore, supporting 4% rise in the overall
non-interest income to Rs 11137 crore in the quarter ended December 2023.
However, the forex income declined 1% qoq to Rs 1210 crore.
Stable expenses ratio: The operating expenses of the bank rose
4% qoq to Rs 15961.08 crore, as other expenses moved up 4% to Rs 10609.32 crore,
while employee expenses also rose 4% to Rs 5351.76 crore in Q3FY2024. Cost to
income ratio was nearly stable at 40.3% in Q3FY2024 compared with 40.4% in Q3FY2024,
helping the Operating Profit to increase 4% to Rs 23647.30 crore.
Provisions and contingencies jump: The bank has showed 45% qoq jump in
provisions to Rs 4216.64 crore. The loan loss provisions rose 7% to Rs 2997 crore,
while other provisions were at Rs 1220.00 crore.
Effective tax rate declined to
15.7% in Q3FY2024
from 24.4% in Q3FY2023. Net Profit rose by 2% qoq to Rs 16372.54 crore during
quarter ended December 2023.
Subsidiary performance
HDB Financial Services Ltd (HDBFSL), in which the
Bank holds an 94.7% stake, is a non-deposit taking NBFC offering wide a range
of loans and asset finance products. For Q3FY2024, HDBFSL’s net revenue was at
Rs 2350 crore as against Rs 2230 crore for Q3FY2023, a growth of 5.0%. Profit
after tax for Q3FY2024 was Rs 640 crore compared to Rs 500 crore for Q3FY2023,
a growth of 27.1%. Profit after tax for 9MFY2024 was Rs 1800 crore compared to
Rs 1410 crore for 9MFY2023. The total loan book was Rs 84000 crore as on
December 31, 2023 compared to Rs 65100 crore as on December 31, 2022, a growth
of 29.0%. Stage 3 loans were at 2.25% of gross loans. As on December 31, 2023,
total CAR was at 18.0% with Tier-I CAR at 14.5%.
HDFC Life Insurance Company Ltd (HDFC Life), in
which the Bank holds a 50.4% stake, is a leading, long-term life insurance
solutions provider in India. For Q3FY2024, HDFC Life’s total premium income was
at Rs 15530 crore as against Rs 14580 crore for Q3FY2023, a growth of 6.5%.
Profit after tax for Q3FY2024 was Rs 370 crore compared to Rs 320 crore for
Q3FY2023, a growth of 15.8%. Profit after tax for 9MFY2024 was Rs 1160 crore
compared to Rs 1000 crore for 9MFY2023.
HDFC ERGO General Insurance Company Ltd (HDFC
ERGO), in which the Bank holds a 50.5% stake, offers a complete range of
general insurance products. For Q3FY2024, premium earned (net) by HDFC ERGO was
at Rs 2560 crore as against Rs 2110 crore for Q3FY2023, a growth of 21.4%.
Profit after tax for Q3FY2024 was Rs 130 crore, up 6.2%, over Q3FY2023. Profit
after tax for 9MFY2024 was Rs 570 crore compared to Rs 450 crore for 9MFY2023.
HDFC Asset Management Company Ltd (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 Q3FY2024, HDFC AMC’s Quarterly Average
Assets Under Management were approximately Rs 551500 crore, a growth of 24.0%
over Q3FY2023. Profit after tax for Q3FY2024 was Rs 490 crore compared to Rs
370 crore for Q3FY2023, a growth of 32.6%. Profit after tax for 9MFY2024 was Rs
1400 crore compared to Rs 1050 crore for 9MFY2023.
HDFC Securities Ltd (HSL), in which the Bank holds
a 95.4% stake, is amongst the leading broking firms in India. For Q3FY2024,
HSL’s total revenue was Rs 700 crore, as against Rs 500 crore for Q3FY2023.
Profit after tax for the quarter was at Rs 230 crore, as against Rs 200 crore
for Q3FY2023. Profit after tax for 9MFY2024 was Rs 630 crore compared to Rs 580
crore for 9MFY2023.
Financial Performance 9MFY2024:
Bank has posted net profit of Rs 44300.42
crore in the nine month ended December 2023 (9MFY2024). The net interest income
increased to Rs 79455.64 crore, while non-interest income was Rs 31074.74 crore,
pushing up net total income to Rs 110530.38 crore in 9MFY2024. The operating
expenses increased to Rs 45417.18 crore, while provision and contingencies rose
to Rs 9980.50 crore. Profit before tax was at Rs 55132.70 crore in 9MFY2024. The
cost-to-income ratio rose 41.1% in 9MFY2024 compared to 39.8% in 9MFY2023. An
effective tax rate declined to 19.6% in 9MFY2024 compared to 24.6% in 9MFY2023.
The net profit has increased to Rs 44300.42 crore in 9MFY2024.
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HDFC Bank: Standalone Results
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Particulars
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2312 (3)
|
2212 (3)
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Var % $
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2312 (9)
|
2212 (9)
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Var % $
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2303 (12)
|
2203 (12)
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Var %
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|
Interest Earned
|
70582.61
|
42707.77
|
|
186867.81
|
116466.19
|
|
161585.55
|
127753.11
|
26
|
|
Interest Expended
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42111.27
|
19719.94
|
|
107412.17
|
52975.78
|
|
74743.31
|
55743.54
|
34
|
|
Net Interest Income
|
28471.34
|
22987.83
|
|
79455.64
|
63490.41
|
|
86842.24
|
72009.57
|
21
|
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Other Income
|
11137.04
|
8499.84
|
|
31074.74
|
22483.65
|
|
31214.83
|
29509.90
|
6
|
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Net Total Income
|
39608.38
|
31487.67
|
|
110530.38
|
85974.06
|
|
118057.07
|
101519.47
|
16
|
|
Operating Expenses
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15961.08
|
12463.60
|
|
45417.18
|
34189.98
|
|
47652.09
|
37442.19
|
27
|
|
Operating Profits
|
23647.30
|
19024.07
|
|
65113.20
|
51784.08
|
|
70404.98
|
64077.28
|
10
|
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Provisions & Contingencies
|
4216.64
|
2806.44
|
|
9980.50
|
9234.30
|
|
11919.67
|
15061.83
|
-21
|
|
Profit Before Tax
|
19430.66
|
16217.63
|
|
55132.70
|
42549.78
|
|
58485.31
|
49015.45
|
19
|
|
EO
|
0.00
|
0.00
|
|
0.00
|
0.00
|
|
0.00
|
0.00
|
-
|
|
PBT after EO
|
19430.66
|
16217.63
|
|
55132.70
|
42549.78
|
|
58485.31
|
49015.45
|
19
|
|
Provision for tax
|
3058.12
|
3958.14
|
|
10832.28
|
10488.52
|
|
14376.60
|
12054.12
|
19
|
|
PAT
|
16372.54
|
12259.49
|
|
44300.42
|
32061.26
|
|
44108.71
|
36961.33
|
19
|
|
EPS*(Rs)
|
86.3
|
64.6
|
|
77.8
|
56.3
|
|
58.1
|
48.7
|
|
|
Adj BV (Rs)
|
545.5
|
469.6
|
|
545.5
|
469.6
|
|
493.3
|
422.6
|
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* Annualized on current equity
of Rs 759.25 crore. Face Value: Rs 1, Figures in Rs crore $ Figures
for 2312 (3) relates to merged entity and are not comparable with earlier
periods
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Source: Capitaline Corporate
Database
|
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