Chennai: Private sector HDFC Bank Ltd on Monday said it closed the first quarter of FY24 with a net profit of Rs 11,951.77 crore, higher than the previous year’s corresponding period figure. In a regulatory filing, HDFC Bank said for the period under review, it had earned a total income of Rs 57,816.67 crore (Q1FY23 Rs 41,560.27 crore) and a net profit of Rs 11,951.77 crore (Rs 9,195.99 crore). For the first quarter, HDFC Bank had provided a sum of Rs 2,860.03 crore as against Rs 3,187.73 crore.
The Gross Non-Performing Asset (GNPA) as on June 30, 2023, stood at Rs 19,064.12 crore against Rs 18,033.67 as on June 30, 2022. The net NPA as on June 30, 2023, was at Rs 4,776.87 crore as against Rs 4,887.73 crore as on June 30, 2022. According to HDFC Bank, the total deposits were at about Rs 19,13,096 crore logging a 19.2 per cent growth over the previous year’s corresponding period. The bank’s advances portfolio as on June 30, 2023, stood at Rs 16.15,672 crore, an increase of 15.8 per cent over June 30, 2022.
Reacting to the result, Shreyansh Shah, Research Analyst at Stoxbox said that HDFC Bank has reported decent numbers for the first quarter with the net profit beating the market estimates. “However, there was some visibility of weak NII (net interest income) and asset quality wherein the bank’s NII missed market estimates and NPAs rose marginally on a sequential basis. The improvement in profitability was on account of lower provisioning and growth in other income which had trading and mark-to-market gain and recoveries,” Shah said.
“Though advances and deposits were marginally higher on a sequential basis, we feel that the merged entity will further improve the performance going forward. We expect the subdued performance of NIMs (net interest margin) in the current quarter to not continue going forward as there will be an improvement in NIMs on account of the merger which took effect from July 01, 2023,” Shah added.
The subsidiaries like HDFC Life, HDFC AMC and HDFC Ergo which were erstwhile subsidiaries of HDFC Ltd. will have huge distribution leverage as they are now the subsidiaries of HDFC Bank. These subsidiaries will get the benefits of the bank’s 8,500 branches plus the addition of 1,500 branches every year, thereby increasing the SOTP value of HDFC Bank, Shah added. Be that as it may, the HDFC Bank share on Monday opened at Rs 1,650 and touched a high of Rs 16,82.05 and closed at Rs 1,679.20.