HDFC Bank reported a 21% YoY increase in overall net profit to Rs 12,594.5 crore for the quarter ended March 31 on April 15. The private lender increased its consolidated net revenue by 20.3 percent year on year to Rs 34,552.8 crore during the quarter, up from Rs 28,733.9 crore in the previous quarter ended March 31, 2022.
Profit before tax (PBT) was Rs 15,935.5 crore for the quarter ending March 31, 2023. After deducting Rs 3,888.1 crore for taxes, the bank generated a net profit of Rs 12,047.5 crore, a 19.8 percent rise over the quarter ended March 31, 2022.
Net interest income (NII), or the difference between interest received and interest expenditure, increased by 23.7 percent to Rs 23,351 crore for the quarter ended March 31, 2023, from Rs 18,872 crore, according to an exchange report by HDFC Bank.
Profits will grow to Rs 12,181 crore, according to the average of three brokerage polls. Net interest income (NII) was forecast to climb 30.5 percent year on year (up 8.8 percent QoQ) to Rs 24,601.9 crore, while the average poll of estimates predicted a 21.9 percent YoY increase in March quarter profits for HDFC Bank.
Standalone revenue increased by 21% to Rs 32,083.0 crore for the fiscal quarter ending March 20, 2023, from Rs 26,509.8 crore the previous year.
According to the lender, total deposits increased by approximately 21 percent to Rs 1,883,395 crore as of March 31, 2023, up from Rs 1,883,395 crore as of March 31, 2022. Meanwhile, overall advances as of March 31, 2023, were at Rs 1,600,586 crore, a 16.9 percent rise over March 31, 2022.
“Domestic retail loans grew by 20.8 percent, commercial and rural banking loans grew by 29.8 percent and corporate and other wholesale loans grew by 12.6 percent,” HDFC Bank said in the exchange filing.
In terms of asset quality, gross non-performing assets accounted for 1.12 percent of gross advances on March 31, 2023, compared to 1.23 percent on December 31, 2022, and 1.17 percent on March 31, 2022. On March 31, 2023, net non-performing assets were 0.27 percent of net loans.
The board of directors of HDFC Bank also proposed a dividend of Rs 19 per share for the fiscal year ending March 31, 2023, up from Rs 15.5 the previous year. This is subject to approval by shareholders.
Furthermore, according to Basel III criteria, the bank’s overall capital adequacy ratio (CAR) was 19.3 percent as of March 31, 2023 (18.9 percent as of March 31, 2022), compared to a regulatory minimum of 11.7 percent.
Provisions and contingencies were Rs 2,685.4 crore for the quarter ended March 31, 2023, compared to Rs 3,312.4 crore for the quarter ended March 31, 2022.
