July 20, 2024
New Delhi, India
Q1 Results
HDFC Bank has announced its financial results for the first quarter of fiscal year 2024-25 (Q1FY25), revealing a slight decline in net profit and a modest rise in net interest income (NII). These results provide insights into the bank’s performance amid evolving market conditions.
Key Financial Highlights:
- Net Profit: HDFC Bank reported a standalone net profit of ₹16,175 crore for Q1FY25, marking a 2% decrease compared to ₹16,511.9 crore in the preceding January-March quarter of FY24.
- Net Interest Income (NII): The bank’s NII rose 2.6% sequentially to ₹29,837 crore, up from ₹29,078 crore in Q4FY24.
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Income and Provisions:
- Total Income: The total income for the quarter increased significantly to ₹83,701 crore from ₹57,816 crore a year ago.
- Provisioning: The bank’s provisioning decreased to ₹2,602 crore from ₹2,860 crore in the same period last year.
Asset Quality:
- Gross Non-Performing Assets (NPA): The gross NPA ratio increased to 1.33% from 1.24% in the previous quarter and 1.17% in the same quarter last year. In absolute terms, gross NPA rose to ₹33,025.69 crore as of June 30, compared to ₹31,173.32 crore in March 2024.
- Net NPA: The net NPA ratio also saw a rise, standing at 0.39% as of June 30, compared to 0.33% in March and 0.30% in June 2023. Net NPA in absolute terms was ₹9,508.44 crore, up from ₹8,091.74 crore in the previous quarter.
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Deposits and Advances:
- Total Deposits: Total deposits reached ₹23.79 lakh crore as of June 30, reflecting a 24.4% year-on-year increase.
- CASA Deposits: CASA deposits grew 6.2%, with savings account deposits at ₹5.97 lakh crore and current account deposits at ₹2.67 lakh crore.
- Time Deposits: Time deposits increased by 37.8% to ₹15.15 lakh crore.
- Gross Advances: Gross advances were at ₹24.87 lakh crore, up 52.6% year-on-year. Retail loans grew by 100.4%, commercial and rural banking loans by 23%, and other wholesale loans by 18.7%. Overseas advances constituted 1.5% of total advances.
Capital Adequacy:
- Overall Capital Adequacy: HDFC Bank’s overall capital adequacy ratio was 19.33% as of June 30, 2024, well above the regulatory requirement of 11.7%.
- Tier I CAR: Tier I capital adequacy ratio was 17.3%.
- Common Equity Tier 1 (CET1) Ratio: The CET1 ratio stood at 16.8%.
- Risk-Weighted Assets: Risk-weighted assets were ₹24.56 lakh crore.
Conclusion: HDFC Bank’s Q1FY25 results indicate a challenging quarter with a slight drop in net profit but steady growth in NII. Despite the rise in NPAs, the bank’s strong capital adequacy and significant growth in deposits and advances showcase its resilience and capacity for sustained performance. The upcoming quarters will be crucial as the bank navigates through the evolving economic landscape.
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