The country’s largest private sector lender HDFC Bank reported a 35 per cent jump in its standalone profit after tax (PAT) at Rs 16,174.75 crore in the quarter ended June 30, compared to Rs 11,951.77 crore in the year ago period. On a sequential basis, the bank’s net profit fell by 2 per cent in the April-June 2024 quarter. Net interest income (NII), which is interest earned less interest expended, grew by 26.4 per cent to Rs 29,840 crore in Q1 FY2025, as against Rs 23,600 crore in the same quarter of last fiscal. Net interest margin (NIM) stood at 3.7 per cent based on interest earning assets, and at 3.5 per cent on total assets. In the reporting quarter, operating expenses increased by 18.2 per cent to Rs 16,620 crore, as against Rs 14,060 crore during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 41 per cent, the bank said. In July last year, HDFC Ltd got merged with HDFC Bank. Gross non-performing assets (GNPA) were at 1.33 per cent of gross advances as on June 30, 2024 (1.16 per cent excluding NPAs in the agricultural segment), as against 1.41 per cent on a pro forma merged basis as on July 1, 2023 (1.25 per cent excluding NPAs in the agricultural segment). Net non-performing assets were at 0.39 per cent of net advances as on June 30, 2024. The lender’s provisions and contingencies stood at Rs 2,600 crore billion as against Rs 2,860 crore for the quarter ended June 30, 2023. The total credit cost ratio was at 0.42 per cent, as compared to 0.70 per cent for the quarter ended June 30, 2023. In the three-month ended June 30, 2024, the bank’s total balance sheet size stood at Rs 35.67 lakh core as against Rs 25.02 lakh crore in the year-ago quarter. Total deposits grew by 24.4 per cent to Rs 23,79,100 crore as in June 2024, from Rs 19,13,100 crore in the year-ago quarter. Current Account Savings Account (CASA) deposits grew by 6.2 per cent with savings account deposits at Rs 5,96,400 crore and current account deposits at Rs 2,67,300 crore. Time deposits were at Rs 15,15,400 crore, an increase of 37.8 per cent over the corresponding quarter of the previous year, resulting in CASA deposits comprising 36.3 per cent of total deposits as of June 30, 2024. Gross advances stood at Rs 24,86,900 crore as of June 30, 2024, an increase of 52.6 per cent over Rs 16,30,000 crore in June 30, 2023. Retail loans grew by 100.4 per cent, commercial and rural banking loans grew by 23 per cent and corporate and other wholesale loans grew by 18.7 per cent. Overseas advances constituted 1.5 per cent of total advances. In a recent address to shareholders, the bank’s Managing Director & Chief Executive Officer, Sashidhar Jagdishan said the lender would grow its advances at a slower pace than deposits as it focuses on bringing down its credit to deposit ratio to levels prior to the merger with HDFC Ltd.
