HDFC Bank first quarter profit rises 19% to Rs 9,196 crore

MUMBAI: HDFC Bank on Saturday said its net profit rose by 19 per cent year-on-year to Rs 9,196 crore for the quarter ended June 30, 2022.

The bank's core net revenue (excluding trading and Mark to Market losses), grew by 19.8 per cent to Rs 27,181.4 crore for the first quarter of the current financial year as compared to Rs 22,696.5 crore recorded in the corresponding period of the last fiscal.

The bank's total net revenues (net interest income plus other income) stood at Rs 25,869.6 crore for the quarter ended June 30, 2022.

Profit before tax (PBT) after trading and Mark to Market losses of Rs 1,311.7 crore in the quarter, was at Rs 12,180.1 crore, and grew by 18.2 per cent over the corresponding quarter of the previous year, HDFC Bank said in a statement.

After providing Rs 2,984.1 crore for taxation, the bank earned a net profit of Rs 9,196.0 crore, an increase of 19.0 per cent over the quarter ended June 30, 2021, it said.

The Board of Directors of HDFC Bank Limited approved the bank's (Indian GAAP) results for the quarter ended June 30, 2022, at its meeting held in Mumbai on Saturday.

The bank's net interest income (interest earned less interest expended) for the quarter ended June 30, 2022 grew by 14.5 per cent to Rs 19,481.4 crore from Rs 17,009.0 crore for the quarter ended June 30, 2021, driven by advances growth of 22.5 per cent, deposits growth of 19.2 per cent and total balance sheet growth of 20.3 per cent.

Core net interest margin was at 4.0 per cent on total assets and 4.2 per cent based on interest earning assets. We continued to add new liability relationships at a robust pace of 2.6 million during the quarter, HDFC Bank said.

The four components of other income for the quarter ended June 30, 2022 were fees and commissions of Rs 5,360.4 crore (Rs 3,885.4 crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of Rs 1,259.3 crore (Rs 1,198.7 crore in the corresponding quarter of the previous year), loss on sale/revaluation of investments of Rs 1311.7 crore (gain of Rs 601.0 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveries and dividend, of Rs 1,080.2 crore (Rs 603.5 crore in the corresponding quarter of the previous year).

Other income, excluding trading and Mark to Market losses, grew by 35.4 per cent over the quarter ended June 30, 2021. The bank's operating expenses for the quarter ended June 30, 2022, were Rs 10,501.8 crore, an increase of 28.7 per cent over Rs 8,160.4 crore during the corresponding quarter of the previous year.

The cost-to-income ratio, excluding trading and Mark to Market losses for the quarter was at 38.6 per cent. HDFC Bank said its total credit cost ratio declined to 0.91 per cent for the quarter ended June 30, 2022, as compared to 1.67 per cent for the quarter ending June 30, 2021.