Financial Results:
HDFC Bank Ltd.’s core net revenue grew by 18.3% for the quarter ended September 30, 2022 from the corresponding quarter a year ago. The total income grew 19% YoY relative to the corresponding quarter a year ago.
It is evident that part of the increase in profitability stems from the reduction of Provisions & Contingencies amount. That would explain as to why the YoY growth for Operating Profit is 10% whereas the YoY growth for Profit is 22%
HDFC Bank’s Loan Mix is well diversified.
Proportion of CASA Deposit stood at 45%. Net interest income for Q2FY23 grew by 18.9% YoY. Core net interest margin was at 4.1% on total assets, and 4.3% based on interest earning assets.
Key Ratios:
| Financial Metrics | Q2FY23 | Q2FY22 |
| Net Interest Margin on Assets | 4.1 | 4.1 |
| Net Interest Income as a % of Net Revenue | 73% | 70% |
| Core Cost to Net Revenue | 39% | 38% |
| Credit Costs as a % of PPOP | 19% | 25% |
| Growth in Advances (YoY) | 25.8% | 15.5% |
| Growth in Deposits (YoY) | 19% | 14.4% |
| CASA Ratio | 45.4% | 46.8% |
| Retail Mix of Deposits | 83% | 82% |
| Total GNPA as a ratio of Customer Assets | 1.18% | 1.28% |
| Total Provisions as a % of Advances | 2.09% | 2.20% |
| Total Provisions as a % of GNPA | 171% | 163% |
| Specific PCR | 73% | 71% |
Capital Adequacy:
The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines for H1FY23 was at 18.0% by Q2FY23 end whereas CAR on Q2FY22 was 20%.
Tier 1 CAR was at 17.1% on Q2FY23 compared to 18.7% on Q2FY22.
Asset Quality:
Gross non-performing assets were at 1.23% of gross advances in Q2FY23, as against 1.35% in Q2FY22. Net non-performing assets were at 0.33% of net advances in Q2FY23.