HDFC Bank Q2: Net Profit Jumps 51% YoY, Provisions Dip 11%

The bank logged a net profit of Rs 15,976 crore for the September quarter in the current financial year against a net profit of Rs 10,605 crore in the second quarter of the previous fiscal year.

The Net Interest Income of the bank grew 30.2 per cent from Rs 21,021 crore in Q2FY23 to Rs 27,385 crore in the second quarter of the current fiscal year.

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HDFC Bank posted a 50.6 per cent increase in its net profit after tax on a year-on-year (YoY) basis in its second quarter (Q2) earnings on Monday. It logged a net profit of Rs 15,976 crore for the September quarter in the current financial year (FY24) against a net profit of Rs 10,605 crore in the second quarter of the previous fiscal year (FY23).

The bank reported it's Gross Non-Performing Assets (GNPAs) at 1.34 per cent for Q2FY24, up by 17 basis points from 1.23 per cent in the second quarter of the previous fiscal year. The Net NPA ratio of the lender climbed up 5 basis points to 0.35 per cent on a quarter-on-quarter (QoQ) basis, as reported in the exchange filing. NPAs are loans or advances issued by the bank that are subject to late repayment or unlikely to be repaid by the borrower in full. 

Notably, this is the first quarterly earnings released by the bank after the $40 billion merger with HDFC Ltd, which came into effect on July 1. The Net Interest Income (NII) of the bank grew 30.2 per cent from Rs 21,021 crore in Q2FY23 to Rs 27,385 crore in the second quarter of the current fiscal year. NII is a reflector of interest earned by the bank after measuring the difference between the interest borrowers pay to the bank and the interest paid by the bank to its depositors. 

Other income (non-interest revenue) for the private lender grew 41 per cent on a YoY basis. The bank’s other income stood at Rs 10,707 crore in the second quarter of the current financial year, up from 7,596 crore in the corresponding quarter a year earlier. Net interest margin for the bank stood at 3.4 per cent in the reporting quarter. 

The bank reported provisions for the quarter at Rs 2,904 crore, down by 10.3 per cent from Rs 3,240 crore recorded in the same quarter a year earlier. The total deposits of the bank increased 29.8 per cent to Rs 21.7 lakh crore in the September quarter, up on a YoY basis. 

The lender’s network at the end of the September quarter stood at 7,945 branches and 20,596 ATMs spread over 3,836 cities/towns.