HDFC’s net profit grows by 19% but its non performing assets swell sequentially

• HDFC Bank today reported a 19% growth in the first quarter to ₹9,169 crore.
• Net interest income for the quarter grew by 14.5% to ₹19,481 crore.
• The bank’s other income excluding trading and mark to market losses grew by 35%.

HDFC Bank today reported a 19% growth in the first quarter of FY23 net profit to ₹9,169 crore, from ₹7,729 crore in the same quarter last year. Its total revenues grew by 13% to ₹41,560 crore as compared to ₹36,771 crore last year.

Net interest income for the quarter grew by 14.5% to ₹19,481 crore from ₹17,009 crore last year. This was driven by a 22.5% growth in advances and 19.2% growth in its deposits, India’s largest private bank said in its press release.

Its gross non-performing assets or NPAs grew by 11.7% to ₹18,033 crore as compared to the fourth quarter of the last financial year. Its net NPAs too went up by around 10.8% as compared to the last quarter.

On a sequential basis, its net profits also fell by 8.5%.

In an annual general meeting that was held on the same day as it declared results, the company chairman Atanu Chakraborthy, the bank chairman claimed that they had added 90 lakh customers during the year.

While inflation reared its ugly head, the resultant monetary tightening has resulted in rate increases and currency depreciation, Chakraborthy said. In the last financial year ending March 2022, it paid a dividend of ₹15.5 per equity share, he said in his AGM speech.

Margins remain flat, while commission fees grows

India’s largest private bank reported a core net interest margin of around 4%. Its other income excluding trading and mark to market losses grew by 35%, the bank said.

“The four components of other income for the quarter were fees and commissions, foreign exchange and derivatives revenue, loss on sale / revaluation of investments of ₹1311 crore, which gained by ₹601 crore in the corresponding quarter of the previous year and miscellaneous income, including recoveries and dividend,” the bank said in a press release.

The bank’s fees and commissions for the quarter stood at ₹5,360 crore.

Its operating expenses for the quarter came in at ₹10,502 crore, and increased by 28.7%.

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