HDFC Bank Limited’s 22% growth in Profits due to Provisions and Contingencies

HDFC Bank Ltd.‘s Total Income for Q2 FY23 has increased by 19% YoY to ₹49,18,210 lakhs. Profits rose by 22% YoY to ₹11,12,521 lakhs. Total Expenditure grew by 25% YoY for Q2 FY 2023.

Return on Average Assets grew to 0.51% from 0.50% a year ago. In this quarter’s results, it is clearly visible that reduction in provisions and contingencies are the major drivers of growth in profitabilty. Provisions and Contigencies decrease by 17% YoY is the reason as to why there is an 10% jump in Operating Profits but a 22% jump in Profits.

To further read this quarter’s research sheet, check out this link.