HDFC Bank Q2 net profit rises 5.28% to ₹16,821 crore, asset quality deteriorates

Net NPA surges 28% to ₹10,308.54 crore, Gross NPA up 8.46%

HDFC Bank Ltd., India’s largest private sector bank, for the second quarter ended September 30, 2024 reported 5.24% growth in standalone net profit at ₹16,821 crore as compared with ₹15,976 crore in the year ago period. 

Net interest income (interest earned less interest expended) for the quarter grew by 10.0% to ₹ 30,110 crore from ₹ 27390 crore a year ago

Core net interest margin was at 3.46% on total assets, and 3.65% based on interest earning assets.

The bank’s asset quality deteriorated during the quarter. Its Gross Non Preforming Assets (NPA) grew 8.46% to ₹34,250.62 crore as compared to the year ago period.

Net NPA surged 27.70% to ₹10,308.54 crore as compared with ₹8,072.79 crore a year ago. 

Provisions and contingencies for the quarter were ₹ 2700 crore as against ₹ 2900 crore a year ago.

The total credit cost ratio was at 0.43%, as compared to 0.49% for the quarter ending September 30, 2023.

Total balance sheet size as of September 30, 2024 was ₹ 36 88100 crore as against ₹ 3416300 crore as of September 30, 2023.

Total Deposits were at ₹ 2500100 crore as of September 30, 2024, an increase of 15.1% Year on Year (YoY).

The bank’s average deposits were ₹ 2354000 crore for the September 2024 quarter, a growth of 15.5% YoY.

Gross advances were at ₹ 2519000 crore as of September 30, 2024, an increase of 7.0%.

Retail loans grew by 11.3%, commercial and rural banking loans grew by 17.4% and corporate and other wholesale loans were lower by 12.0%. Overseas advances constituted 1.7% of total advances, the bank said in a filing. 

The bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 19.8% as on September 30, 2024 (19.5% as on September 30, 2023) as against a regulatory requirement of 11.7%. 

Tier 1 CAR was at 17.8% and Common Equity Tier 1 Capital ratio was at 17.3% as of September 30, 2024. Risk-weighted Assets were at ₹ 2481300 crore. 

The consolidated profit after tax for the quarter was ₹17,826 crore, up 6% over the same period last year.

Published - October 19, 2024 07:27 pm IST