InvestorQ : What is your quick take on the HDFC Bank results for the second quarter?
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What is your quick take on the HDFC Bank results for the second quarter?

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Rashi Mehra answered.
1 month ago
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For the September 2022 quarter HDFC Bank reported 18.7% higher revenues at Rs49,182 crore on consolidated basis 11.27% sequential growth. HDFC Bank saw growth across retail banking and wholesale banking, while treasury lagged. Net interest income (NII) for the quarter was up 18.9% at Rs21,021 crore while net interest margin (NIM) improved to 4.1% core NIM and 4.3% on interest earning assets. This is slightly better than previous quarters. Provisions and contingencies for the quarter were lower at Rs3,240 crore against Rs3,925 crore in the year ago quarter. Here is a gist of the key numbers of HDFC Bank.

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%

Now for the profit picture. The PAT for September 2022 quarter was up 22.3% at Rs11,125 crore on a consolidated basis. This was triggered by the sharp growth in NII and expansion of the NIMs. The credit cost ratio came down to 0.87% from 1.3%; helping profits to grow. In terms of business volume information, total deposits of the bank were up by 19% at Rs16,73,408 crore with CASA growing 15.9% yoy and constituting 45.4%of total deposit mix.

Even advances picture was quite impressive, growing 23.4% yoy at Rs14,79,873 crore. Domestic retail lending grew 25.8%, commercial and rural banking at 31.3% and the corporate and wholesale loan book at 27%. The shift is happening from retail to wholesale. Capital adequacy at 18% is above the statutory requirement of 11.7%. Asset quality improved with gross NPAs tapering 12 bps to 1.23% and net NPAs at 0.33%. Net profit margins at 22.62% were higher than comparable yoy and sequential quarters.

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