HDFC Bank Q2 Results: Net Profit jumps 51% to Rs 15,976 Cr, NII rises 30% to Rs 27,385 Cr, YoY

Today, HDFC Bank – India’s largest private sector lender – revealed its financial data for the first time. It reported the following key figures:

• Gross non-performing assets (NPAs) increased to 1.34% of gross advances in Q2FY23, up from 1.17% in the previous quarter.
• Net NPA increased from 0.30% to 0.35%.
• Net NPA reached Rs 8,072.79 crore, up from Rs 4,776.87 crore sequentially.
• Gross NPA climbed a bit and reached Rs 31,578 crore quarter on quarter, up from Rs 19,064 crore.
• Q2FY24 pre-provision operating profit (PPOP) grew by 30.5% to Rs 22,694 crore from Rs 17,392 crore in the corresponding quarter of the previous year.
• The bank’s CASA (Current and Savings Account) ratio stood at 37.6%, and the core interest margin was at a modest rate of 3.65% in total assets.
• HDFC Bank also reported a Net Interest Income (NII) increase of 6.7% YoY, which stood at Rs 27,385 crore for this quarter despite expectations of it decreasing following a merger with the parent entity.
• Net profit also increased by 6%, compared to the pre-merger Q2FY23 period when it was at Rs 15,976.11 crores.
• The substantial growth that Pre-Provision Operating Profit (PPOP) saw last year continued into this one, too, as it rose even further by another 30.5%. It managed to reach Rs 22,694 crores from the Q2FY23 corresponding period’s Rs17,392 crores.
• The CASA ratio of the bank (Current and Savings Account) was at 37.6%, and the core interest margin was 3.65% on total assets.
• HDFC Bank reported a 6.7% increase in its Net Interest Income (NII), which stood at Rs 27,385 crore for the quarter, contrary to expectations that there would be a decrease following the merger with the parent company.
• Net profit also bumped up by 6% compared to pre-merger periods of Q2FY23, where it was Rs 15,976.11 crore.
• Q2FY24 saw substantial growth in pre-provision operating profit (PPOP), increasing by 30.5% compared to last year’s corresponding quarter to reach Rs 22,694 crore.
• On September 30, 2023, provisions and contingencies had an amount of Rs 2,904 crore, down from last year’s period of time, which was Rs 3,240 crore.

Ahead of HDFC Bank’s quarterly results being released, shares on the NSE were valued at Rs 1,532. They showed a small decrease when compared to the previous day’s closing price, which had a percentage of only 0.24%. The dip was slightly steeper on the BSE, with shares priced at Rs 1,529.5 apiece, marking a decline of 0.47% from the last closing price.