HDFC Bank Q2 Results: Profit soars 51% YoY to Rs 15,976 crore, beats estimate
HDFC Bank, the leading private financial institution in the nation, had robust expansion during the second quarter, as seen by a significant 51% year-on-year increase in nett profit, amounting to Rs 15,976 crore.
In the second quarter of fiscal year 2024, the bank had a significant increase in nett revenue, with a growth rate of 33.1 percent. The nett revenue for this quarter amounted to Rs 38,093 crore, compared to Rs 28,617 crore in the corresponding period of the previous year.
The National Institute of Informatics (NII) experiences a significant increase of 30%.
The financial institution’s nett interest income, representing its fundamental revenue from lending activities, reached a total of Rs 27,385 crore. The aforementioned figure indicates a gain of 30.3 percent compared to the amount of Rs 21,021 crore recorded for the quarter that concluded on September 30, 2022.
In contrast, the non-interest revenue for the quarter amounted to Rs 10,708 crore, exhibiting a notable increase from Rs 7,596 crore in the equivalent period of the previous year.
The bank’s operational expenditures for the period amounted to Rs 15,399 crore, reflecting a growth of more than 37 percent compared to Rs 11,225 crore in the second quarter of the fiscal year 2023. The cost-to-income ratio for the quarter was recorded as 40.4 percent.
In the second quarter of fiscal year 2024, HDFC Bank witnessed a year-on-year growth of 30.5% in its pre-provision operating profit (PPOP), amounting to Rs 22,694 crore.
It is worth mentioning that the bank’s provisions and contingencies for the quarter amounted to Rs 2,904 crore, which is lower than the Rs 3,240 crore recorded in the same period of the previous year.
According to the bank’s statement, the overall credit cost ratio for the second quarter was 0.49%, which represents a decrease from the 0.87% recorded in the second quarter of the previous fiscal year (Q2FY23).
As of September 30, 2023, HDFC Bank’s balance sheet exhibited a significant increase in size, amounting to over Rs 34 lakh crore, in contrast to the previous year’s figure of Rs 22,27,893 crore on September 30, 2022.
According to the bank’s report, the gross non-performing assets accounted for 1.34% of the gross advances as of September 30, 2023. This figure is in comparison to the 1.41% reported on a pro forma merger basis as of June 30, 2023, and the 1.23% reported as of September 30, 2022.
In the interim, the financial institution’s net non-performing assets were at 0.35 percent of nett advances as of September 30, 2023.Click to follow us on Telegram now!