HDFC Bank Q1 Results: PAT Zooms 35% To Rs 16,175 Cr Lead By 44% Income Growth

The financial results for the quarter ending June 30, 2024, have been released by HDFC Bank, the largest private sector lender in India determined by market capitalization. For the quarter that ended on June 30, 2024, HDFC Bank recorded a standalone net profit of Rs 16,175 crore, up 35% from the lender's Rs 11,952 crore in the year-ago quarter. In the quarter under review, the bank recorded a total income of Rs 83,701 Cr, up 44% from Rs 57,816 Cr in Q1FY24.

On April 15, 2024, the bank received 16,13,176 equity shares of HDFC Securities Limited (HSL), which were purchased in a rights issue for a total of Rs 953.23 crore. June 30, 2024, saw the bank's stake in HSL at 95.19%. The bank granted 1,12,11,640 equity shares for the quarter that ended on June 30, 2024, as a result of the execution of options or units under the authorised employee stock option schemes and employee stock incentive master scheme.

Consolidated net revenue of the bank increased from 350.7 billion to 724.2 billion for the quarter ending June 30, 2023, a 106.5% growth. Consolidated profit after tax for the June 30, 2024 quarter came to 164.7 billion, up 33.2% from the June 30, 2023 quarter. As of June 30, 2024, book value per share was Rs 625.4, while earnings per share for the quarter ended June 30, 2024, were 21.7.

From Rs 328.3 billion in the year-ago quarter to Rs 405.1 billion for the quarter ending June 30, 2024, the bank's net revenue jumped by 23.4%. For the quarter ending June 30, 2024, net interest income increased by 26.4% to Rs 298.4 billion from Rs 236.0 billion for the quarter ending June 30, 2023. The core net interest margin was 3.66% based on interest-earning assets and 3.47% based on total assets.

Operating expenses increased by 18.2% to Rs 166.2 billion for the quarter that ended on June 30, 2024, from Rs 140.6 billion for the same period the previous year. For the quarter, the cost-to-income ratio was at 41.0%. Compared to Rs 28.6 billion for the quarter ended June 30, 2023, provisions and contingencies for the quarter ended June 30, 2024 were Rs 26.0 billion. As of June 30, 2023, the total credit cost ratio was 0.42% as against 0.70% in Q1FY24. For the quarter that ended on June 30, 2024, profit before tax (PBT) was Rs 212.8 billion. The quarter's profit after tax (PAT) was Rs 161.7 billion, up 35.3% from the quarter that ended on June 30, 2023.

As of June 30, 2024, HDFC Bank had a total balance sheet size of Rs 35,672 billion, compared to Rs 25,017 billion in the same period in 2023. As of June 30, 2024, total deposits stood at Rs 23,791 billion, up 24.4% from the same period in 2023. With savings account deposits at Rs 5,964 billion and current account deposits at Rs 2,673 billion, CASA deposits climbed by 6.2%. As of June 30, 2024, time deposits were at Rs 15,154 billion, up 37.8% from the same quarter the year before. As a consequence, CASA deposits made up 36.3% of all deposits.

The bank's average deposits for the June 2024 quarter were Rs 22,831 billion, up 4.6% from Rs 21,836 billion in the March 2024 quarter and 25.2% from Rs 18,240 billion in the June 2023 quarter. The bank's average CASA deposits for the June 2024 quarter were Rs 8,106 billion, up 3.3% from Rs 7,844 billion in the March 2024 quarter and 8.1% from Rs 7,495 billion in the June 2023 quarter.

As of June 30, 2024, gross advances jumped to Rs 24,869 billion, a 52.6% rise from June 30, 2023. Corporate and other wholesale loans climbed by 18.7%, retail loans by 100.4%, and commercial and rural banking loans by 23.0%. On an average basis, the bank's advances under management jumped by 54.1% from Rs 16,439 billion in the June 2023 quarter and by 0.8% over Rs 25,125 billion in the March 2024 quarter to Rs 25,327 billion in the June 2024 quarter.

As of June 30, 2024, HDFC Bank's gross non-performing assets were 1.33% of gross advances. As of June 30, 2024, net non-performing assets represented 0.39% of net advances.

The bank's distribution network comprised 8,851 branches and 21,163 ATMs spread over 4,081 cities and towns as of June 30, 2024, compared to 7,860 branches and 20,352 ATMs spread over 3,825 cities and towns in the same period in 2023. The bank has 52% of its branches in rural and semi-urban regions. Furthermore, 15,146 business correspondents of HDFC Bank are employed mostly by Common Service Centres (CSC). As of June 30, 2024, there were 2,13,069 employees (compared to 1,81,725 as of June 30, 2023).