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HDFC Bank has reported net profit at Rs 16174.75 crore for the quarter ended June 2024 (Q1FY2025) compared with Rs 16511.85 crore in the previous quarter Q4FY2024. The bank has posted 2.6% qoq growth in net interest income (NII), while the core fee income of the bank declined 12% in Q1FY2025. The Net Interest Margin (NIM) of the bank improved to 3.47% in
Q1FY2025 compared to 3.44% in the previous quarter.
On business front, the bank as has posted marginal decline in business volumes on sequential basis as the loan book declined 1% qoq, while the deposits base was steady end June 2024. The asset quality of the bank has witnessed moderate pressure in Q1FY2025 with rise
slippages and declines recoveries. Bank has further reduced the credit to deposit ratio to 104.5% at end June 2024 from 105.4% at end March 2024. However, the CASA ratio of the bank has declined to 36.3% at end June 2024 from 38.2% at end March 2024.
Asset quality witness pressure: The bank has showed pressure on asset quality with rise in fresh slippages and declines in recoveries of bad debt in
Q1FY2025.
The fresh slippages of loans stood at
Rs 7900 crore in Q1FY2025 compared with 7300 crore in previous quarter and Rs 5800
crore in the corresponding quarter last year.
The recoveries and upgradations of NPAs
stood at Rs 3500 crore, while the write-off of loans was at Rs 2600 crore in
Q1FY2025.
Provision coverage ratio eased to 71% at
end June 2024 compared to 74% a quarter ago and 75% a year ago.
The capital adequacy ratio of the bank
stood at 19.3% with Tier I ratio at 17.3% at end June 2024.
The risk weighted assets of the bank
has declined 1% qoq to Rs 2455600 crore end June 2024,
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Asset Quality
Indicators: HDFC Bank
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Jun-24
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Mar-24
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Dec-23
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Sep-23
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Jun-23
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Variation
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QoQ
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YoY$
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Gross NPA (Rs Crore)
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33025.69
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31173.32
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31011.67
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31577.89
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19064.12
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6
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Net NPA (Rs Crore)
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9508.44
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8091.74
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7664.10
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8072.79
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4776.87
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18
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% Gross NPA
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1.33
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1.24
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1.26
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1.34
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1.17
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9
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% Net NPA
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0.39
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0.33
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0.31
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0.35
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0.30
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6
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% PCR
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71.00
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74.00
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75.00
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74.00
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75.00
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-300
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% CRAR - Basel III
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19.33
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18.80
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18.39
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19.54
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18.93
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53
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% CRAR - Tier I - Basel III
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17.30
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16.80
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16.80
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17.80
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16.90
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50
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
$ figures for June 2024
related to merged entity and are not comparable June 2023 period
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Business Highlights:
Business volumes flat qoq: The business of the bank was flat qoq
at Rs 4865985 crore end June 2024. Advances declined 1% qoq to Rs 2486900 crore.
Deposits were flat qoq at Rs 2379085 crore at end June 2024.
CASA deposits ratio declines: The CASA deposits of the bank increased
6% YoY to Rs 863700 crore at end June 2024. The current account deposits
increased 6% to Rs 267300 crore, while saving account deposits also moved up 6%
to Rs 596400 crore end June 2024. The CASA ratio declined to 36.3% at end June
2024 compared to 42.5% at end June 2023, while declined from 38.2% a quarter
ago.
The term deposits have increased 3% qoq
to Rs 1515385 crore end June 2024.
Retail and MSME loans driving overall
loan growth: Advances growth was driven by retail loans rising 2% qoq to Rs 1281700
crore at end June 2024, while credit to MSME increased 2% to Rs 712700 crore at
end June 2024. However, the credit to agriculture declined 5% to Rs 100100 crore
and corporate credit has declined 5% to Rs 480500 crore end June 2024. The
overseas credit has declined 1% qoq to Rs 37304 crore end June 2024.
Investment book of the bank moved up 25%
YoY to Rs 708817 crore at end June 2024.
Margins improve qoq: The bank has showed steady qoq cost of
funds at 4.9% and yield on funds was also flat at 8.4% in Q1FY2025. The NIM has
improved 3 bps qoq to 3.47%.
Branch expansion: The bank has added 113 branches and 225
ATMs in Q1FY2025. Bank’s distribution network was at 8,851
branches and 21,163 ATMs across 4,081 cities / towns end June 2024 as against
7,860 branches and 20,352 ATMs across 3,825 cities / towns end June 2023. About
52% of branches are in semi-urban and rural areas. In addition, bank has 15,146
business correspondents, which are primarily manned by Common Service Centres
(CSC). The number of employees were at 2,13,069 end June 2024 as against
1,81,725 end June 2023
Book value of the bank stood at Rs 598.9 per share
at end June 2024, while the adjusted book value (net of NNPA and 10% of
restructured advances) was Rs 585.9 per share at end June 2024.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 2.2% qoq increase in
the interest earned at Rs 73033.14 crore, while interest expenses increased 1.9%
to Rs 43196.00 crore in Q1FY2025. NII improved 2.6% to Rs 29837.14 crore in the
quarter ended June 2024.
Core fee income growth slows: Bank has posted 12% yoy growth in core
fee income to Rs 7050 crore, while the recoveries and other income jumped 86% to
Rs 2010 crore and forex income 7% to Rs 1400 crore. However, the treasury
income declined 60% to Rs 220 crore. The overall non-interest income increased
16% Rs 10668.11 crore in the quarter ended June 2024.
Expenses ratio ease: The operating expenses of the bank declined
8% qoq to Rs 16620.61 crore, as other expenses fell 2% 16% to Rs 10771.73 crore,
while employee expenses dipped 16% to Rs 5848.88 crore in Q1FY2025. Cost to
income ratio was nearly stable at 41.0% in Q1FY2025 compared with 42.8% in
Q1FY2024.
Provisions and contingencies decline: The bank has showed 9% yoy decline in
provisions to Rs 2602.06 crore.
Effective tax rate declined to
24.0% in Q1FY2025
from 24.9% in Q1FY2024. Net Profit came in at Rs 16174.75 crore during quarter
ended June 2024.
Subsidiary performance
HDB
Financial Services (HDBFSL), in which the Bank holds a 94.6%
stake, is a non-deposit taking NBFC offering a wide range of loans and asset
finance products. For Q1FY2025, HDBFSL’s net revenue was at Rs 2390 crore as
against Rs 2310 crore for Q1FY2024, a growth of 3.2%. Profit after tax for
Q1FY2025 was Rs 580 crore compared to Rs 570 crore for Q1FY2024, a growth of
2.6%. The total loan book was Rs 95600 crore end June 2024 compared to Rs 73600
crore end June 2023, a growth of 30.0%. Stage 3 loans were at 1.93% of gross
loans. End June 2024, total CAR was at 18.8% with Tier-I CAR at 14.0%.
HDFC
Life Insurance Company (HDFC Life), in which the Bank holds a
50.4% stake, is a leading, long-term life insurance solutions provider in
India. For Q1FY2025, HDFC Life’s total premium income was at Rs 12810 crore as
against Rs 11670 crore for Q1FY2024, a growth of 9.7%. Profit after tax for
Q1FY2025 was Rs 480 crore compared to Rs 420 crore for Q1FY2024, a growth of
15.0%.
HDFC
ERGO General Insurance Company (HDFC ERGO), in which the Bank holds a
50.5% stake, offers a complete range of general insurance products. For
Q1FY2025, premium earned (net) by HDFC ERGO was at Rs 2140 crore as against Rs
2000 crore for Q1FY2024, a growth of 6.7%. Profit after tax for Q1FY2025 was Rs
130 crore, as against profit after tax of Rs 200 crore for Q1FY2024.
HDFC
Asset Management Company (HDFC AMC), in which the Bank holds a
52.5% stake, is the Investment Manager to HDFC Mutual Fund, one of the largest
mutual funds in India and offers a comprehensive suite of savings and
investment products. For Q1FY2025, HDFC AMC’s Quarterly Average Assets Under
Management were approximately Rs 671600 crore, a growth of 38.3% over Q1FY2024.
Profit after tax for Q1FY2025 was Rs 600 crore compared to Rs 480 crore for
Q1FY2024, a growth of 26.5%.
HDFC
Securities (HSL), in which the Bank holds a 95.2% stake, is
amongst the leading broking firms in India. For Q1FY2025, HSL’s total revenue
was Rs 820 crore, as against Rs 500 crore for Q1FY2024. Profit after tax for
Q1FY2025 was Rs 290 crore, as against Rs 190 crore for Q1FY2024, a growth of
54.6%.
Financial Performance FY2024
Bank has posted net profit of Rs
60812.28 crore in the year ended March 2024 (FY2024). The net interest income
came in at Rs 108532.47 crore and non-interest income at Rs 49240.99 crore,
pushing up net total income to Rs 157773.46 crore in FY2024. The operating
expenses were Rs 63386.01 crore, while provision and contingencies galloped to
Rs 23492.14 crore. Profit before tax rose to Rs 70895.31 crore in FY2024. The
cost-to-income ratio was 40.2% in FY2024 compared to 40.4% in FY2023. An
effective tax rate declined to 14.2% in FY2024 compared to 24.6% in FY2023. The
net profit increased to Rs 60812.28 crore in FY2024.
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HDFC Bank: Results
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Particulars
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2406 (3)
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2306 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Interest Earned
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73033.14
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48586.81
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258340.56
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161585.55
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Interest Expended
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43196.00
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24987.74
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149808.09
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74743.31
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Net Interest Income
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29837.14
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23599.07
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108532.47
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86842.24
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Other Income
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10668.11
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9229.86
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49240.99
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31214.83
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Net Total Income
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40505.25
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32828.93
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157773.46
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118057.07
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Operating Expenses
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16620.61
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14056.91
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63386.01
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47652.09
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Operating Profits
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23884.64
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18772.02
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94387.45
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70404.98
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Provisions & Contingencies
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2602.06
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2860.03
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23492.14
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11919.67
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Profit Before Tax
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21282.58
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15911.99
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70895.31
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58485.31
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EO
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0.00
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0.00
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0.00
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0.00
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PBT after EO
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21282.58
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15911.99
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70895.31
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58485.31
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Provision for tax
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5107.83
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3960.22
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10083.03
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14376.60
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PAT
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16174.75
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11951.77
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60812.28
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44108.71
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EPS*(Rs)
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85.0
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62.8
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79.9
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58.0
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Adj BV (Rs)
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585.9
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516.0
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564.8
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491.4
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* Annualized on current equity
of Rs 760.81 crore. Face Value: Rs 1, Figures in Rs crore
Figures for 2406 (3) and 2403
(12) relates to merged entity and are not comparable with earlier periods
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Source: Capitaline Corporate
Database
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