HDFC’s net profit increases 19%, but its non-performing assets swell sequentially

  • HDFC Bank today reported Q1 growth of 19% to ₹9,169 crore.
  • Net interest income for the quarter increased by 14.5% to ₹19,481 crore.
  • The bank’s other income excluding trading losses and mark to market increased by 35%.

HDFC Bank today reported a 19% growth in its FY23 net profit in the first quarter to ₹9,169 crore, from ₹7,729 crore in the same quarter last year. Its total revenue increased by 13% to ₹41,560 crore from ₹36,771 crore last year.

Net interest income for the quarter increased by 14.5% to ₹19,481 crore from ₹17,009 crore last year. That was driven by growth of 22.5% in advances and 19.2% in its deposits, India’s largest private bank said in its press release.

Its gross non-performing assets or NPA increased by 11.7% to ₹18,033 crore from the fourth quarter of the prior year. Its net NPAs were also up around 10.8% from last quarter.

On a sequential basis, its net earnings also fell 8.5%.

At an annual general meeting held on the same day as the results were announced, company chairman Atanu Chakraborthy, the bank’s chairman, claimed to have added 90 lakh customers during the year.

As inflation surged, the resulting monetary tightening led to rate hikes and currency depreciation, Chakraborthy said. In the last financial year ending March 2022, it paid a dividend of ₹15.5 per share, he said in his address to the general meeting.

Margins remain stable, while commissions increase

India’s largest private bank reported a core net interest margin of around 4%. Its other non-trading income and market value losses rose 35%, the bank said.

“The four components of other income for the quarter were fees and commissions, foreign exchange and derivatives income, loss on sale/revaluation of investments of ₹1,311 crore, which gained ₹601 crore in the corresponding quarter of the previous year and miscellaneous income. , including collections and dividends,” the bank said in a press release.

The bank’s fees and commissions for the quarter were ₹5,360 crore.

Its operating expenses for the quarter were ₹10,502 crore and increased by 28.7%.


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