HDFC Bank Q2FY23 PAT up 22.3% at Rs11,125cr as NII and net interest margins (NIM) improve

16 Oct 2022 , 05:48 PM

HDFC Bank Ltd reported 18.69% growth in total revenues for the September 2022 quarter on consolidated basis at Rs49,182cr. Sequential revenues were up 11.27%.

In terms of top line growth, the bank saw growth across retail banking and wholesale banking. However, treasury income was down in the quarter due to rising bond yields.

In terms of operating profits, there was a surge in profits of retail and wholesale banking, but treasury just about managed to break even in the quarter.

Net interest income (NII) for the quarter grew 18.9% you at Rs21,021 crore. The core net interest margin (NIM stood at 4.1% while the core NIM on interest earning assets stood at 4.3%; a slight improvement over previous quarters.

Provisions and contingencies for the quarter stood at Rs3,240 crore, sharply lower compared to Rs3,925 crore in the year ago quarter.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 22.3% at Rs11,125cr with a sharp growth in the NII and the NIMs on a yoy basis. The total credit cost ratio came down to 0.87% in the quarter compared to 1.3% last year, which helped profits to grow.

On a yoy basis, the total deposits of the bank were up by 19% at Rs16,73,408 crore. CASA deposits comprising of low cost current and savings accounts grew by 15.9% yoy and now account for a healthy 45.4%of the total deposit mix.

On the advances front, the growth was 23.4% yoy at Rs14,79,873 crore. While the domestic retail lending grew by 25.8%, the retail loans grew 21.4% while the commercial and rural banking loans grew by 31.3%.

Corporate and wholesale loans also grew by over 27% hinting at a clear shift towards non-retail loan growth for HDFC Bank. Its capital adequacy at 18% is well above the statutory requirement of 11.7%.

In terms of asset quality, gross NPAs tapered by 12 bps to 1.23% in the quarter while the net NPAs stood at 0.33%. Net profit margins at 22.62% were higher yoy and QOQ.

Financial highlights for Sep-22 compared yoy and sequentially

	HDFC Bank
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 49,182	₹ 41,436	18.69%	₹ 44,202	11.27%
Operating Profit (Rs cr)	₹ 18,722	₹ 17,036	9.89%	₹ 16,489	13.54%
Net Profit (Rs cr)	₹ 11,125	₹ 9,096	22.31%	₹ 9,579	16.14%
Diluted EPS (Rs)	₹ 19.93	₹ 16.32		₹ 17.19
OPM	38.07%	41.11%		37.30%
Net Margins	22.62%	21.95%		21.67%