HDFC bank released its Q1 reports for FY23. The reports show the company’s profits, provisions, deposits, etc. In some areas, the bank has performed well while some did not prove profitable.
HDFC released its financial reports for the first quarter (Q1) of the financial year (FY23). The first quarter has been profitable for many companies. It has enabled businesses to recover from losses faced during the pandemic and given growth opportunities. Many companies could rise above their pre-pandemic levels while others are recovering from the losses faced. HDFC has generated profits as well as grown in many sectors. With their current reports and future expansion plan, the company is in the radii of stakeholders.
One of the biggest private sector banks in the country on Friday closed at ₹1363 per share in the share market. The share price was recorded at a rise of 0.93 percent, ₹12.55. This was before the company released its Q1 reports. Before the market opens on Monday, here are key points from the report to remember.
Net Profit
The company reported a net profit of ₹9,196 crores with quarter-on-quarter growth of 19.0 percent. In FY22 this net profit was recorded at ₹7,729.6 crores. Though there has been a rise in the profits compared to last year’s Q1 the company has seen a decline in the net profit compared to the last quarter. The net profits for Q3 FY22 were 8.1 percent greater than the current net profit. The reason for this is the decline in credit cost and increased liabilities.
Net Interest Income
Net Interest Income (NII) is the difference between revenue from interest-bearing assets and expenses on interest-bearing liabilities. The company recorded an NII of ₹19,481.4 crores. For FY22 this was ₹17,009 crores which shows a rise of 14.5 percent. The core interest rate margin was 4 percent of total assets and 4.2 percent on interest-earning assets.
Total Deposits
The company’s total deposits showed rapid growth. It has increased by 19.2 percent from last year. The deposits recorded for Q1 of FY23 are ₹ 1,604,760 crores, which last year were recorded at ₹ 1,345,829 crores. The CASA deposit, which is the amount deposited in the current account and savings account of the bank’s customers has also seen a rise of 20.1 percent. For the savings account the amount was recorded at ₹5,14,063 crores and for the current account amount was ₹2,20,584 crores.
Total Advances
With an increase of 21.6 percent, the total advances for Q1 have been recorded at ₹ 1,395,068 crores. The loan mix included Corporate loans, retail lending, and CRBs. The breakdown of these three is as follows: 39 percent for corporates, 35 percent for CRBs, and 26 percent for retail lending. 3.5 percent of the total advances were overseas. These advances are expected to increase in the further quarter as the bank will merge with its housing loan company.
Others
The balance sheet size of the company was reported at ₹ 2,109,772 crores which is 20.3 percent from last year. Their revenue included fees and commissions which increased from ₹3885.4 crores in the last year to ₹5,360.4 crores. There was an increase of 38 percent. The bank has 6,378 operating branches in the country and has installed 18,620 ATMs. While 50 percent of the bank’s branches are in metro and urban areas, 50 percent of them are in rural and semi-urban areas.
This was a brief overview of the company’s performance in Q1 of FY23. The company is expanding and the coming months would be challenging yet exciting. With the merger, it is expected that both the companies together bring changes in the banking and the lending sector.
