HDFC Bank showcased impressive growth and profitability in its Q1 results.

HDFC

HDFC Bank, the largest private sector bank in the country, recently released its Q1 financial results for FY24. The bank showcased outstanding performance, with significant growth in various key areas. Let’s delve into the details of HDFC Bank’s remarkable achievements.

Gross Non-Performing Assets (GNPA) and Net NPA (NNPA)

The bank has demonstrated an impressive reduction in its gross non-performing assets (GNPA) ratio. The GNPA ratio improved from 1.28 percent in the corresponding period last year to a commendable 1.17 percent. Equally remarkable is the reduction in net NPA (NNPA) from 0.35 percent to an impressive 0.30 percent, further strengthening the bank’s financial position.

Profit Surge and Market Expectations

HDFC Bank reported a substantial increase in net profit for the April-June quarter of FY24. The net profit soared to Rs 11,951 crore, surpassing market expectations. Several brokerage polls anticipated a net profit of Rs 11,581 crores, but HDFC Bank outperformed predictions with its exceptional earnings.

Net Interest Income (NII) and Core Net Interest Margin

The bank experienced robust growth in its net interest income (NII), which surged by 21.1 percent to reach Rs 23,599 crore for the quarter ended June 30, 2022. This growth is significant when compared to the NII of Rs 19,481 crore during the same period last year. HDFC Bank’s core net interest margin, based on total assets, reached 4.1 percent, while it stood at an impressive 4.3 percent based on interest-earning assets.

Deposit and Advances Growth

HDFC Bank witnessed substantial growth in both deposits and advances, showcasing its strong market position. The total deposit of the bank surged by 19.2 percent on a year-on-year basis, amounting to Rs 19.13 lakh crores. Additionally, the bank experienced a notable increase in current account and savings account (CASA) deposits, which grew by 10.7 percent. The current account deposits reached Rs 2.52 lakh crores, while savings account deposits stood at Rs 5.6 lakh crores. Time deposits also saw a significant improvement of 26.4 percent, totaling Rs 11 lakh crores.

On the advances front, HDFC Bank achieved a growth rate of 15.8 percent, amounting to Rs 16.15 lakh crores. The bank showcased its versatility with impressive growth across various loan segments. Domestic retail loans experienced a remarkable surge of 20 percent, while commercial and rural banking loans grew by an impressive 29.1 percent. Additionally, corporate and other wholesale loans witnessed a growth rate of 11.2 percent.

Segment-Wise Revenue

HDFC Bank’s diverse revenue streams contributed to its overall financial success. The treasury segment displayed remarkable growth, reporting a revenue of Rs 10,537 crores, a significant increase from Rs 7,379 crores during the corresponding quarter last year. Retail banking emerged as the major revenue generator, with revenues amounting to Rs 42,939 crores, surpassing the previous year’s figure of Rs 31,685 crores. Additionally, the bank’s wholesale banking segment reported a substantial increase in revenue, reaching Rs 28,332 crores, compared to Rs 18,642 crores last year.

In response to the positive Q1 results, HDFC Bank’s stock rose by nearly 1.5 percent, reaching Rs 1,668 on the NSE at 1:25 pm.

HDFC Bank’s impressive growth and profitability reflect its ability to adapt to market dynamics and deliver outstanding financial performance. With a strong focus on customer-centric banking and prudent risk management, HDFC Bank continues to strengthen its position as a leader in the Indian banking industry.

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