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HDFC Bank

Udaipur : The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarterand nine months endedDecember 31, 2022, at its meeting held in Mumbai on Saturday, January 14, 2023. The accounts have been subjected toa ‘Limited Review’ by the statutory auditors of the Bank.

STANDALONE FINANCIAL RESULTS:

Profit & Loss Account: Quarter ended December 31, 2022

The Bank’s net revenue, grew by 18.3% to ₹31,487.7crore for the quarter ended December 31, 2022 from ₹26,627.0crore for the quarter ended December 31, 2021.Excluding net trading and mark to market income, the net revenue grew by 22.1%over the quarter ended December 31, 2021.

Net interest income (interest earned less interest expended) for the quarter ended December 31, 2022 grew by 24.6% to ₹22,987.8 crore from ₹ 18,443.5 crore for the quarter ended December 31, 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 December 31, 2022 were fees & commissions of ₹6,052.6 crore (₹5,075.1 crore in the corresponding quarter of theprevious year), foreign exchange & derivatives revenue of ₹1,074.1 crore (₹949.5 crore in the corresponding quarter of the previous year), net trading and mark to marketincome of ₹261.4crore (₹1,046.5 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveriesand dividend, of ₹1,111.8 crore (₹1,112.5 crore in the corresponding quarter of the previous year). Other income, excluding net trading and mark to market income, grew by 15.4%over the quarter ended December 31, 2021.

Operating expenses for the quarter ended December 31, 2022were ₹12,463.6crore, anincrease of26.5% over ₹9,851.1crore during the corresponding quarter of the previousyear. Thecost-to-income ratiofor the quarterwas at 39.6%.

Pre-provision Operating Profit (PPOP) was at ₹19,024.1 crore.PPOP, excluding net trading and mark to market income, grew by 19.3% over the quarter ended December 31, 2021.

Provisions and contingencies for the quarter ended December 31, 2022 were ₹ 2,806.4 crore as against ₹ 2,994.0 crore for the quarter ended December 31, 2021.

The total credit cost ratio was at 0.74%, as compared to 0.94% for the quarter ending December 31, 2021.

Profit before tax (PBT) for the quarter ended December 31, 2022 was at ₹ 16,217.6 crore.After providing ₹3,958.1 crore for taxation, the Bank earned a net profit of ₹12,259.5 crore, an increase of 18.5% over the quarter ended December 31, 2021.

Balance Sheet: As of December 31, 2022

Total balance sheet size as of December 31, 2022was ₹2,295,305crore as against ₹1,938,286crore as of December 31, 2021, a growth of 18.4%.

Total Deposits showed a healthy growth and were at ₹1,733,204croreas of December 31, 2022, an increase of 19.9% over December 31, 2021. CASA deposits grew by12.0% with savings account deposits at ₹535,206 crore and current account deposits at ₹227,745 crore.Time deposits were at ₹970,253crore, an increase of 26.9% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 44.0% of total deposits as of December 31, 2022.

Total advances as of December 31, 2022 were ₹1,506,809 crore, an increase of 19.5% over December 31, 2021. Gross of transfers through inter-bank participation certificates and bills rediscounted, total advances grew by 23.6% over December 31, 2021.Domestic retail loans grew by 21.4%, commercial and rural banking loans grew by 30.2% and corporate and other wholesale loans grew by 20.3%. Overseas advances constituted 2.8% of total advances.

Nine months ended December 31, 2022

For the nine months ended December 31, 2022, the Bank earned a total income of ₹ 138,949.8 crore as against ₹ 116,177.2 crore in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the nine months ended December 31, 2022 were ₹ 85,974.1 crore, as against ₹ 75,009.7 crore for the nine months ended December 31, 2021. Net profit for the nine months ended December 31, 2022was ₹ 32,061.3 crore, up by 19.2% over the corresponding nine months ended December 31, 2021.

Capital Adequacy:

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines (including profits for the nine months ended December 31, 2022) was at 19.4% as onDecember 31, 2022(19.5% as onDecember 31, 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 17.2% as ofDecember 31, 2022compared to 18.4% as ofDecember 31, 2021. Common Equity Tier 1 Capital ratio was at 16.4% as of December 31, 2022. Risk-weighted Assets were at ₹1,536,272 crore (as against ₹1,267,426 crore as at December 31, 2021).

NETWORK

As of December 31, 2022, the Bank’s distribution network was at7,183branchesand 19,007 ATMs / Cash Deposit & Withdrawal Machines(CDMs)across3,552cities / towns as against5,779branches and 17,238ATMs/ CDMsacross 2,956cities / towns as of December 31, 2021.51%of our branches are in semi-urban and rural areas.In addition, we have 15,815 business correspondents, which are primarily manned by Common Service Centres (CSC).Number of employees were at 166,890 as of December 31, 2022 (as against 134,412 as of December 31, 2021).

ASSET QUALITY

Gross non-performing assets were at 1.23% of gross advances as on December 31, 2022(1.00% excluding NPAs in the agricultural segment),as against1.23% as on September 30, 2022 (1.03% excluding NPAs in the agricultural segment), and1.26% as on December 31, 2021 (1.04% excluding NPAs in the agricultural segment). Net non-performing assets were at 0.33% of net advances as on December 31, 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 December 31, 2022, the Bank held 95.6%stake in HSL.For the quarter ended December 31, 2022, HSL’s total revenue was at ₹504.9crore, as against ₹535.6crore for the quarter ended December 31, 2021. Profit after tax for the quarter was at₹203.2crore, as against ₹258.0crore for the quarter ended December 31, 2021.

As on December 31, 2022, HSL had 210branches 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 December 31, 2022, the Bank held 94.9%stake in HDBFSL.

For the quarter ended December 31, 2022, HDBFSL’s net revenuewas at₹2,233.4crore as against ₹1,981.6crore for the quarter ended December 31, 2021, a growth of 12.7%. Profit after tax for the quarter ended December 31, 2022 was ₹501.2 crore compared to ₹304.0crore for the quarter ended December 31, 2021.

The total loan book was ₹ 65,103 crore as on December 31, 2022. Stage 3 loans were at 3.73% of gross loans. As on December 31, 2022, total CAR was at 20.5% with Tier-I CAR at 16.0%.

As on December 31, 2022, HDBFSL had 1,421branches across 1,020cities / towns.

CONSOLIDATED FINANCIAL RESULTS

The consolidated net profit for the quarter ended December 31, 2022 was ₹12,698 crore, up 19.9%, over the quarter ended December 31, 2021. Consolidated advances grew by 19.2% from ₹1,312,142crore as on December 31, 2021 to ₹1,563,799crore as on December 31, 2022.

The consolidated net profit for the nine months ended December 31, 2022 was ₹ 33,403 crore, up 21.0%, over the nine months ended December 31, 2021.