HDFC Bank logs 35% increase in net profit

Loan provisions for the quarter stood at Rs 2,602 crore, a reduction compared to Rs 13,511.64 crore in the previous quarter indicating that the asset quality has only improved.

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NEW DELHI: Returning to its once famed over 30% net income for as many as 34 quarters on the trot which ended with the pandemic era, the second-largest lender logged in a robust 35.33% jump in net profit at Rs 16,174.75 crore for the June quarter even though the numbers are not comparable since the merger with its parent took effect only from July last year.

Higher profit is in spite of the bank seeing doubling of its standalone net NPAs and gross NPAs shooting up by 73% in absolute basis as the balance sheet expanded with the merger and not in actual percentage terms as the provisions came down massively. Loan provisions for the quarter stood at Rs 2,602 crore, a reduction compared to Rs 13,511.64 crore in the previous quarter indicating that the asset quality has only improved.

In percentage terms GNPA inched up to 1.33% compared to 1.24% in the previous quarter and 1.17% in the year ago period. Similarly, net NPAs rose to 0.39% from 0.33% as of March 2023 and 0.30% as on June 2023. In absolute terms, GNPA rose to Rs 33,025.69 crore as against Rs 31.173.32 crore in March 2023 and Rs 19,064.12 crore in June 2023. Similarly, NNPA stood at Rs 9,508.44 crore in the reporting quarter, compared to Rs 8,091.74 crore in a quarter ago period and Rs 4,776.87 crore in a year ago. In the year ago quarter on a standalone basis its net income stood at Rs 11,951.77crore. However due to better asset quality provisioning was down to Rs 2,602 crore from Rs 2,860 crore a year earlier.

Total deposits were at Rs 23.79 lakh crore, up 24.4% year-on-year. Of this Casa deposits grew 6.2%, with saving account deposit at Rs 5.97 trillion, and current account deposit at Rs 2.67 trillion . Gross advances stood at Rs 24.87 trillion, up 52.6% year-on-year. The net interest income rose by 50.31% to Rs 73,033.14 crore from Rs 48,586.81 crore during the same quarter of the previous year, the management told reporters in a concall Saturday.

On a consolidated basis net grew 33.17% to Rs 16,474.85 crore in Q1FY25. On the impact of merger and the resultant transition to the revised asset classification norms the bank made a clean gain of Rs 482.87 crore after transition to the revised norms for classification, valuation and operation of investment portfolio of banks on April 1.

Bank’s asset quality improved

Balance sheet expanded with the merger and not in actual percentage terms as the provisions came down massively. Loan provisions for the quarter stood at Rs 2,602 crore, a reduction as against Rs 13,511.64 crore in the last quarter indicating that asset quality has only improved

Earnings

Net profit

Q1FY25: Rs 16,474.85 crore

Q1FY24: Rs 12,370 crore

Total income:

Q1FY25: Rs 83,701 crore

Q1FY24: Rs 57,816 crore

Provisioning

Q1FY25: Rs 2,602 crore

Q1FY24: Rs 2,860 crore

NPAs

Q1FY25: 1.33%

Q4FY24: 1.24%