HDFC Bank Limited; FINANCIAL RESULTS (INDIAN GAAP) FOR THE QUARTERENDED JUNE 30, 2023

Udaipur : The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarterendedJune 30, 2023, at its meeting held in Mumbai on Monday, July 17, 2023. The accounts have been subjected to a ‘Limited Review’ by the statutory auditors of the Bank.

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HDFC Bank

The Bank’s consolidated net revenue grew by 25.9% to ₹ 35,067 crore for the quarter ended June 30, 2023 from ₹ 27,844 crore for the quarter ended June 30, 2022. The consolidated net profit for the quarter ended June 30, 2023 was ₹12,370 crore, up 29.1%, over the quarter ended June 30, 2022. Earnings per share for the quarter ended June 30, 2023was at ₹22.2and book value per share as of June 30, 2023 was ₹ 542.7.

The Bank’s net revenue grew by 26.9% to ₹ 32,829 crore for the quarter ended June 30, 2023 from ₹ 25,870 crore for the quarter ended June 30, 2022.

Net interest income (interest earned less interest expended) for the quarter ended June 30, 2023 grew by 21.1% to ₹23,599 crore from ₹ 19,481 crore for the quarter ended June 30, 2022.Core net interest margin was at 4.1% on total assets, and 4.3% based on interest earning assets.

Other income (non-interest revenue) at ₹ 9,230 crore was 28.1% of the net revenues for the quarter ended June 30, 2023 as against ₹ 6,388 crore in the corresponding quarter ended June 30, 2022.The four components of other income for the quarter ended June 30, 2023 were fees & commissions of ₹6,290 crore (₹5,360 crore in the corresponding quarter of theprevious year), foreign exchange & derivatives revenue of ₹1,309 crore (₹1,024 crore in the corresponding quarter of the previous year), net trading and mark to marketgain of ₹552 crore (loss of ₹1,077 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveries and dividend, of ₹1,079crore (₹1,080 crore in the corresponding quarter of the previous year). Other income, excluding net trading and mark to market income, grew by 16.2%over the quarter ended June 30, 2022.

Operating expenses for the quarter ended June 30, 2023were ₹14,057crore, anincrease of33.9% over ₹10,502crore during the corresponding quarter of the previousyear. Thecost-to-income ratiofor the quarterwas at 42.8%.

Pre-provision Operating Profit (PPOP) at ₹ 18,772 crore grew by 22.2% over the corresponding quarter of the previous year.

Provisions and contingencies for the quarter ended June 30, 2023 were ₹ 2,860 crore as against ₹ 3,188 crore for the quarter ended June 30, 2022.

The total credit cost ratio was at 0.70%, as compared to 0.91% for the quarter ending June 30, 2022.

Profit before tax (PBT) for the quarter ended June 30, 2023 was at ₹ 15,912 crore.After providing ₹3,960 crore for taxation, the Bank earned a net profit of ₹11,952 crore, an increase of 30.0% over the quarter ended June 30, 2022.

Total balance sheet size as of June 30, 2023was ₹25,01,693crore as against ₹21,09,772crore as of June 30, 2022, a growth of 18.6%.

Total Deposits showed a healthy growth and were at ₹19,13,096 crore as of June 30, 2023, an increase of 19.2% over June 30, 2022. CASA deposits grew by10.7% with savings account deposits at ₹5,60,604 crore and current account deposits at ₹2,52,350 crore.Time deposits were at ₹11,00,142crore, an increase of 26.4% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 42.5% of total deposits as of June 30, 2023.

Total advances as of June 30, 2023 were ₹16,15,672 crore, an increase of 15.8% over June 30, 2022. Gross of transfers through inter-bank participation certificates and bills rediscounted, total advances grew by 20.1% over June 30, 2022. Domestic retail loans grew by20.0%, commercial and rural banking loans grew by 29.1% and corporate and other wholesale loans grew by 11.2%. Overseas advances constituted 2.6% of total advances.

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelineswas at 18.9% as onJune 30, 2023(18.1% as onJune 30, 2022) 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 16.9% and Common Equity Tier 1 Capital ratio was at 16.2% as of June 30, 2023. Risk-weighted Assets were at ₹16,70,899 crore.

As of June 30, 2023, the Bank’s distribution network was at7,860branchesand 20,352 ATMs / Cash Deposit & Withdrawal Machines(CDMs)across3,825cities / towns as against6,378branches and 18,620 ATMs / CDMs across 3,203cities / towns as of June 30, 2022.52%of our branches are in semi-urban and rural areas. In addition, we have 15,194 business correspondents, which are primarily manned by Common Service Centres (CSC).Number of employees were at 1,81,725 as of June 30, 2023 (as against 1,52,511 as of June 30, 2022).

Gross non-performing assets were at 1.17% of gross advances as on June 30, 2023(0.94% excluding NPAs in the agricultural segment),as against1.12% as on March31, 2023 (0.94% excluding NPAs in the agricultural segment), and1.28% as on June 30, 2022 (1.06% excluding NPAs in the agricultural segment). Net non-performing assets were at 0.30% of net advances as on June 30, 2023.

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 June 30, 2023, the Bank held 95.6%stake in HSL.For the quarter ended June 30, 2023, HSL’s total revenue was at ₹497crore, as against ₹432crore for the quarter ended June 30, 2022. Profit after tax for the quarter was at₹189crore, as against ₹189crore for the quarter ended June 30, 2022.

As on June 30, 2023, HSL had 207branches 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 customer segments such as individuals, emerging businesses and micro enterprises which are typically different from the segments that the Bank caters to. As on June 30, 2023, the Bank held 94.8%stake in HDBFSL.

For the quarter ended June 30, 2023, HDBFSL’s net revenuewas at₹2,314crore as against ₹2,194crore for the quarter ended June 30, 2022, a growth of 5.5%. Profit after tax for the quarter ended June 30, 2023 was ₹567 crore compared to ₹441crore for the quarter ended June 30, 2022, a growth of 28.5%.

The total loan book was ₹ 73,568 crore as on June 30, 2023 compared to ₹ 61,814 crore as on June 30, 2022, a growth of 19%.Stage 3 loans were at 2.48% of gross loans. As on June 30, 2023, total CAR was at 19.8% with Tier-I CAR at 15.8%. As on June 30, 2023, HDBFSL had 1,581branches across 1,101cities / towns.

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