HDFC Bank Q1 net profit rises 30% YoY to ₹11,952 crore; NII jumps 21%

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HDFC Bank, the largest private lender in the country, reported a standalone net profit of ₹11,951.7 crore for the quarter ended June 2023, registering a growth of 30% from ₹9,196 crore in the same quarter last year. The bank's net interest income (NII) during Q1FY24 increased 21.1% to ₹23,599.1 crore from ₹19,481.4 crore, YoY. Core interest margin was at 4.1% on total assets, and 4.3% based on interest earnings assets, the bank said.

Pre-provision operating profit (PPOP) in Q1FY24 grew by 22.2% to ₹18,772 crore from ₹15,367.84 crore in the corresponding quarter of the previous year. Provisions and contingencies for the quarter ended June 30, 2023, were at ₹2,860 crore as against ₹3,188 crore, YoY. HDFC Bank's asset quality declined sequentially during the quarter ended June 2023.

Its Gross non-performing assets (NPA) increased 5.7% to ₹19,045.1 crore from ₹18,019 crore, while Net NPA rose 9.4% to ₹4,776.9 crore from ₹4.368.4 crore, QoQ. Gross NPA ratio in Q1FY24 stood rose 5 basis points to 1.17% from 1.12%, and Net NPA ratio inched up by 3 bps to 0.30% from 0.27%, QoQ. HDFC Bank's total deposit showed a healthy growth and were at ₹19,13,096 crore as of June 30, 2023, an increase of 19.2% over June 30, 2022.  This is HDFC Bank's first earnings after its merger with parent Housing Development Finance Corporation (HDFC).

CASA deposits grew by 10.7% with savings account deposits at ₹5,60,604 crore and current account deposits at ₹2,52,350 crore. Time deposits were at ₹11,00,142 crore, an increase of 26.4% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 42.5% of total deposits as of June 30, 2023, the bank said in a release. Total advances as of June 30, 2023 were ₹16, 15,672 crore,