Hit Or Miss? HDFC Bank's Q2FY24 Results In 15 Points

The much-awaited private sector bank's Q2 earnings are out! HDFC Bank has delivered its September quarterly financial results for the fiscal year 2022-23. This would be HDFC Bank's first earnings after it acquired the once-upon-a-time behemoth, Housing Development Finance Corporation (HDFC). Overall, the top line was a miss, but the bottom-line was more upbeat than the street's expectations.

HDFC Bank earned a net profit of Rs 15,976 crore in the quarter under review, increasing 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 market cap was over Rs 11.59 lakh crore. Markets will react to HDFC Bank's earnings on October 17th.

Shreyansh Shah, Research Analyst, StoxBox highlighted the overall performance of HDFC Bank's Q2 results in 15 points. Here's what they are:

1. Net Interest Income stood at Rs 27,385 crore in Q2FY24, missing market estimates of Rs 28,000 crore.

2. Pre-provision operating profit (PPOP) stood at Rs 22,694 crores in Q2FY24.

3. Provisions stood at Rs 2,904 crore in Q2FY24.

4. The bank's quarterly net profit of Rs 15,976 crore in Q2FY24 surpassed market expectations of Rs 14,000 crore.

5. After absorbing the debt-funded cost for additional liquidity and merger management, NIM stood at 3.6% in Q2FY24.

6. Gross NPA stood at 1.34% in Q2FY24, down 7bps on a proforma merged basis as on 30th June 2023.

7. Net NPA stood at 0.35% in Q2FY24.

8. Capital Adequacy Ratio stood at 19.5% in Q2FY24.

9. Gross Deposits stood at Rs 21,72,858 crore in Q2FY24 with savings account deposits at Rs 5,69,956 crore, current account deposits at Rs 2,47,749 crore and time deposits standing at Rs. 13,55,153 crore.

10. Gross Advances stood at Rs 23,54,633 crore in Q2FY24.

11. CASA stood at 37.6% in Q2FY24.

12. HDB Financial Services Ltd., the NBFC arm of the bank, reported a net revenue of Rs 2,357 crore in Q2FY24, a growth of 7.1% YoY. However, the lending company's PAT stood at Rs 601 crore, showing a healthy growth of 27.5% YoY.

13. HDFC Life Insurance Company the life insurance subsidiary of the bank, reported a net premium income of Rs 14,756 crore in Q2FY24, showcasing a growth of 12.5% YoY. The PAT stood at Rs 377 crore, up 15.6% YoY.

14. HDFC Ergo General Insurance Company Ltd., the general insurance arm of the bank, reported a PAT of Rs 236 crore in Q2FY24.

15. Numbers are not comparable on a QoQ or YoY basis due to the merger with HDFC Ltd. with effect from July 1, 2023.