HDFC Bank Q2 result: Net profit rises 50% to Rs 15,796 crore; NII up 30.3%

The net profit of HDFC Bank for the second quarter of the current financial year (Q2FY24) rose 50.6 per cent to Rs 15,796 crore from Rs 10,605 crore year-on-year (y-o-y), the bank said in a BSE filing. Total income of the bank stood at Rs 78,406 crore in Q2, up 69 per cent y-o-y from Rs 46181 crore.

The bank's net revenue grew by 33.1 per cent to Rs 38,093 crore for the quarter ended September 30, 2023 from 28,617 crore for the quarter ended September 30, 2022. 

Net interest income (NII) for the Q2FY24 grew by 30.3 per cent to Rs 27,385 crore from Rs 21,021 crore for the Q2FY23. Core net interest margin for the quarter was 3.65 per cent on total assets and 3.85 per cent on interest earning assets. 

Profit before tax (PBT) for the quarter ended September 30, 2023 was at Rs 19,790 crore. After providing Rs 3,814 crore for taxation, the bank earned a net profit of Rs 15,976 crore, an increase of 50.6 per cent y-o-y. 

After absorbing debt-funded cost for additional liquidity and merger management, the reported NIM for the quarter is 3.4 per cent on total assets and 3.6 per cent on interest earning assets. 

Operating expenses for the Q2FY24 were Rs 15,399 crore, an increase of 37.2 per cent over Rs 11,225 crore y-o-y. The cost-to-income ratio for the quarter was at 40.4 per cent. 

Pre-provision operating profit (PPOP) at Rs 22,694 crore grew by 30.5 per cent over the corresponding quarter of the previous year. Provisions and contingencies for the quarter under assessment were Rs 2,904 crore as against Rs 3,240 crore for the quarter ended September 30, 2022. 

The total credit cost ratio was at 0.49 per cent, as compared to 0.87 per cent for the quarter ending September 30, 2022. 

Gross advances were up by nearly Rs 1.1 trillion in Q2 after the merger and were at Rs 23,54,633 crore as of September 30, 2023. This is an increase of 57.7 per cent y-o-y. The advances grew by 60.0 per cent over September 30, 2022. 

Domestic retail loans grew by 112.1 per cent, commercial and rural banking loans grew by 29.5 per cent and corporate and other wholesale loans (excluding non-individual loans of eHDFC Ltd of approximately Rs 1,02,800 crore) grew by 7.9 per cent. Overseas advances constituted 1.7 per cent of total advances.