Udaipur : The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarterand half year endedSeptember 30, 2022, at its meeting held in Mumbai on Saturday, October 15, 2022. The accounts have been subjected toan audit by the statutory auditors of the Bank.
STANDALONE FINANCIAL RESULTS:
Profit & Loss Account: Quarter ended September 30, 2022
The Bank’s core net revenue (excluding trading and Mark to Market losses), grew by 18.3% to ₹ 28,869.8 crore for the quarter ended September 30, 2022 from ₹ 24,409.7 crore for the quarter ended September 30, 2021.The total net revenues (net interest income plus other income) were ₹28,616.7 crore for the quarter ended September 30, 2022.
Net interest income (interest earned less interest expended) for the quarter ended September 30, 2022 grew by 18.9% to ₹21,021.2 crore from ₹ 17,684.4 crore for the quarter ended September 30, 2021. Core net interest margin was at 4.1% on total assets, and 4.3% based on interest earning assets.
The four components of other income for the quarter ended September 30, 2022 were fees & commissions of ₹5,802.9 crore(₹4,945.9 crore in the corresponding quarter of theprevious year), foreign exchange & derivatives revenue of ₹947.8 crore (₹867.3 crore in the corresponding quarter of the previous year), loss on sale / revaluation of investments of ₹253.1crore (gain of₹675.5 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveriesand dividend, of ₹1,097.9 crore (₹912.1 crore in the corresponding quarter of the previous year). Other income, excluding trading and Mark to Market losses, grew by 16.7%over the quarter ended September 30, 2021.
Operating expenses for the quarter ended September 30, 2022were ₹11,224.6crore, anincrease of21.0% over ₹9,277.9crore during the corresponding quarter of the previousyear. Thecost-to-income ratiofor the quarterwas at 39.2%.
Pre-provision Operating Profit (PPOP) was at ₹17,392.2 crore.PPOP, excluding trading and Mark to Market losses, grew by 16.6% over the quarter ended September 30, 2021.
Provisions and contingencies for the quarter ended September 30, 2022 were ₹ 3,240.1 crore (consisting of specific loan loss provisions of ₹ 3,000.4 crore and general and other provisions of ₹ 239.7 crore) as against ₹ 3,924.7 crore for the quarter ended September 30, 2021.
The total credit cost ratio was at 0.87%, as compared to 1.30% for the quarter ending September 30, 2021.
Profit before tax (PBT) for the quarter ended September 30, 2022 was at ₹ 14,152.0 crore.After providing ₹3,546.3 crore for taxation, the Bank earned a net profit of ₹10,605.8 crore, an increase of 20.1% over the quarter ended September 30, 2021.
Balance Sheet: As of September 30, 2022
Total balance sheet size as of September 30, 2022was ₹2,227,893crore as against ₹1,844,845crore as of September 30, 2021, a growth of 20.8%.
Total Deposits showed a healthy growth and were at ₹1,673,408croreas of September 30, 2022, an increase of 19.0% over September 30, 2021. CASA deposits grew by15.4% with savings account deposits at ₹529,745 crore and current account deposits at ₹229,951 crore.Time deposits were at ₹913,712crore, an increase of 22.1% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 45.4% of total deposits as of September 30, 2022.
Total advances as of September 30, 2022 were ₹1,479,873 crore, an increase of 23.4% over September 30, 2021. Gross of transfers through inter-bank participation certificates and bills rediscounted, total advances grew by around 25.8% over September 30, 2021.Domestic retail loans grew by 21.4%, commercial and rural banking loans grew by 31.3% and corporate and other wholesale loans grew by 27.0%. Overseas advances constituted 3.1% of total advances.
Half Year ended September 30, 2022
For the half year ended September 30, 2022, the Bank earned a total income of ₹ 87,742.2 crore as against ₹ 75,525.6 crore in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the half year ended September 30, 2022 were ₹ 54,486.4 crore, as against ₹ 48,382.6 crore for the half year ended September 30, 2021. Net profit for the half year ended September 30, 2022was ₹ 19,801.8 crore, up by 19.5% over the corresponding half year ended September 30, 2021.
Capital Adequacy:
The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines (including profits for the half year ended September 30, 2022) was at 18.0% as onSeptember 30, 2022(20.0% as onSeptember 30, 2021) as against a regulatory requirement of 11.7% which includes Capital Conservation Buffer of 2.5%, and an additional requirement of 0.2% on account of the Bank being identified as a Domestic Systemically Important Bank (D-SIB).Tier 1 CAR was at 17.1% as ofSeptember 30, 2022compared to 18.7% as ofSeptember 30, 2021. Common Equity Tier 1 Capital ratio was at 16.3% as of September 30, 2022. Risk-weighted Assets were at ₹1,477,855 crore (as against ₹1,190,270 crore as at September 30, 2021).
NETWORK
As of September 30, 2022, the Bank’s distribution network was at6,499branchesand 18,868 ATMs / Cash Deposit & Withdrawal Machines(CDMs)across3,226cities / towns as against5,686branches and 16,642ATMs/ CDMsacross 2,929cities / towns as of September 30, 2021.50%of our branches are in semi-urban and rural areas.In addition, we have 15,691 business correspondents, which are primarily manned by Common Service Centres (CSC).Number of employees were at 161,027 as of September 30, 2022 (as against 129,341 as of September 30, 2021).
ASSET QUALITY
Gross non-performing assets were at 1.23% of gross advances as on September 30, 2022, as against1.35%as on September 30, 2021. Net non-performing assets were at 0.33% of net advances as on September 30, 2022.
SUBSIDIARIES
The Bank’s subsidiary companies prepare their financial results in accordance with the notified Indian Accounting Standards (‘Ind-AS’). The Bank for the purposes of its statutory compliance prepares and presents its financial results under Indian GAAP. Hence the Bank’s subsidiary companies, for the purposes of the consolidated financial results of the Bank, prepare ‘fit-for-consolidation information’ based on the recognition and measurement principles as per Indian GAAP. The financial numbers of the Bank’s subsidiary companies mentioned herein below are in accordance with Ind-AS.
HDFC Securities Limited (HSL) is amongst the leading retail broking firms in India. As on September 30, 2022, the Bank held 95.8%stake in HSL.For the quarter ended September 30, 2022, HSL’s total revenue was at ₹468.2crore, as against ₹489.5crore for the quarter ended September 30, 2021. Profit after tax for the quarter was at₹190.9crore, as against ₹239.6crore for the quarter ended September 30, 2021.
As on September 30, 2022, HSL had 215branches across 147cities / towns in the country.
HDB Financial Services Limited (HDBFSL) is a non-deposit taking non-banking finance company (‘NBFC’) offering wide range of loans and asset finance products to individuals, emerging businesses and micro enterprises. As on September 30, 2022, the Bank held 94.9%stake in HDBFSL.
For the quarter ended September 30, 2022, HDBFSL’s net revenuewas at₹2,201.3crore as against ₹1,916.7crore for the quarter ended September 30, 2021, a growth of 14.9%. Profit after tax for the quarter ended September 30, 2022 was ₹471.4 crore compared to ₹191.7crore for the quarter ended September 30, 2021.
The total loan book was ₹ 63,112 crore as on September 30, 2022. Stage 3 loans were at 4.88% of gross loans. As on September 30, 2022, total CAR was at 20.8% with Tier-I CAR at 16.0%.
As on September 30, 2022, HDBFSL had 1,407branches across 1,009cities / towns.
CONSOLIDATED FINANCIAL RESULTS
The consolidated net profit for the quarter ended September 30, 2022 was ₹11,125 crore, up 22.3%, over the quarter ended September 30, 2021. Consolidated advances grew by 22.8% from ₹1,249,331crore as on September 30, 2021 to ₹1,533,945crore as on September 30, 2022.
The consolidated net profit for the half year ended September 30, 2022 was ₹ 20,704 crore, up 21.7%, over the half year ended September 30, 2021.