HDFC Bank-HDFC Merger: Here's How Subsidiaries Like HDFC AMC, HDFC Ergo, HDFC Sec Have Performed In Q2

The largest private sector lender, HDFC Bank delivered its September quarter numbers for FY24 on Monday, After the merger of once upon a time largest NBFC, HDFC, its subsidiaries like HDFC Securities, HDFC AMC, HDFC Ergo GIC, HDFC Capital Advisors and HDFC Life Insurance also came under HDFC Bank. Some of these subsidiaries' Q2FY24 earnings have also been declared.

Let's have a look:

1. HDB Financial Services Limited:

In this subsidiary, HDFC Bank holds a 94.8% stake. It is a non-deposit-taking NBFC offering a wide range of loans and assets finance products.

In Q2FY24, HDB posted a net revenue of Rs 2,357 crore, registering a growth of 7.1% from Rs 2,201 crore in Q2FY23. Profit after tax jumped by 27.5% to Rs 602 crore in Q2FY24, as against Rs 471 crore in the same quarter a year ago.

The total loan book stood at Rs 77,857 crore as of September 30, 2023, as against Rs 63,112 crore as of September 30, 2022. This would be growth of 23.4% YoY in total loans.

2. HDFC Life Insurance Company:

Here, HDFC Bank holds a 50.4% stake. HDFC Life is a leading, long-term life insurance products provider in India. In Q2FY24, the insurer posted a net premium income of Rs 14,756 crore, up by 12.5% from Rs 13,111 crore in Q2FY23.

PAT stood at Rs 377 crore in Q2FY24, recording a growth of 15.5% as against Rs 326 crore in Q2FY23.

HDFC ERGO:

HDFC Ergo, in which HDFC Bank also holds a 50.5% stake, offers a complete range of general insurance products.

During the second quarter of FY24, the company garnered a premium (net) of Rs 2,592 crore, up by a whopping 22.4% from Rs 2,118 crore in the same quarter a year ago.

Net profit in the quarter under review was at Rs 236 crore in Q2FY24, soaring by 33.1% from Rs 177 crore in Q2FY23.

HDFC AMC:

HDFC AMC is a listed company and is an investment manager to HDFC Mutual Fund, which is one of the largest mutual funds in the country and offers a comprehensive suite of savings and investment products. HDFC Bank holds a 52.6% stake in the company after the merger of HDFC.

In Q2FY24, the company's quarterly average asset under management (AUM) stood at Rs 5.25 lakh crore, up by 22.2% compared to the same quarter a year ago. Profit after tax (PAT) came in at Rs 438 crore in Q2FY24, up by 20.2% from Rs 364 crore in Q2FY23.

HDFC Securities:

HDFC Bank holds a 95.5% stake in HDFC Sec which is among the leading broking firms in the country. During Q2FY24, the subsidiary's revenue was at Rs 603 crore, as against Rs 468 crore a year ago same period.

PAT was at Rs 214 crore in Q2FY24, higher than Rs 191 crore in the September 2022 quarter.

India's largest NBFC till June 30, 2023, HDFC was amalgamated with and into HDFC Bank on July 1, 2023, in the largest ever deal in the country's corporate history, at $40 billion.

Meanwhile, the parent HDFC Bank earned a net profit of Rs 15,976 crore in Q2FY24, rising by 50.6% YoY. While net interest income (NII) which is the difference between interest earned and expended, came in at Rs 27,385 crore in Q2FY24, recording a growth of 30.3% from Rs 27,385 crore in Q2FY23.

On BSE, HDFC Bank shares closed at Rs 1529.50 apiece, down by 0.5%. Its makret cap was over Rs 11.59 lakh crore.