Bank

Net Profit Jumps 19% to Rs 9,196 Crore, NII Increases 14.5%; See the details

HDFC Bank FY23 First Quarter Results: HDFC Bank, India’s largest private sector lender, on Saturday reported a 19% increase in year-on-year net profit to Rs 9,195.99 crore for the quarter ended June 30. Net profit amounted to Rs 7,729.64 crore in the corresponding quarter last year.

HDFC Bank’s core income, excluding trading and market-to-market losses, increased 19.8% year-on-year to Rs 27,181.4 crore in the June quarter of FY23 from Rs 22,696 .5 crore in the June quarter of FY22. Total net income (net interest income plus other income) was 25,869.6 crore in the quarter under review.

Net Interest Income (NII), for the April to June quarter, increased by 14.5% year-on-year to Rs 19,481.4 crore from Rs 17,009.0 crore during the same quarter last year. Base interest margin was 4% on total assets and 4.2% based on interest earning assets during Q1FY23. This was driven by advance growth of 22.5%, deposit growth of 19.2% and total balance sheet growth of 20.3%.

On the other hand, non-interest income also increased to Rs 9,011.6 crore in the first quarter of FY23 from Rs 6,288.6 crore in the same quarter last year. . HDFC Bank further reported an increase in its pre-provision operating profit (PPOP) of 14.7% on an annual basis to Rs 15,367.8 crore for the quarter ended June 2022.

HDFC Bank has made provisions worth Rs 3,187.7 crore for the first quarter of the current financial year, down 34% from the Rs 4,830.8 crore reported in the same quarter last year. The provision was Rs 3,312.35 during the quarter ended March 2021.

HDFC Bank’s gross non-performing assets (GNPA) declined this quarter to 1.28% from 1.47% in Q1FY22. However, it edged up 0.32% from the quarter ended March 2022. Meanwhile, Net Non-Performing Assets (NNPA) fell 0.35% in Q1FY23 from 0.48% in Q1FY22. However, it was a little higher than that of Q4FY22, when the bank posted 0.32% NNPA.

The total balance sheet size as of June 30, 2022 was Rs 2,109,772 crore compared to Rs 1,753,941 crore as of June 30, 2021, representing a growth of 20.3%. On the other hand, total deposits increased and stood at Rs 1,604,760 crore as of June 30, 2022, an increase of 19.2 percent compared to the same quarter last year.

HDFC Bank recorded growth in its distribution networks in Q1FY23, with 6,378 branches and 18,620 ATMs/cash deposit and withdrawal machines (CDMs) in 3,203 cities and towns, compared to 5,653 branches and 16,291 ATMs/CDMs in 2,917 cities and towns in Q1FY22. Fifty percent of the bank’s branches are in rural and semi-urban areas. The number of employees at India’s largest private sector bank was 152,511 as of June 30, 2022 compared to 123,473 as of June 30, 2021, the lender reported.

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