The bank’s basic net income increased by 18.3% to 28,869.8 cr

New Delhi: The Board of Directors of HDFC Bank Limited has approved the results of the Bank (Indian GAAP) for the three and six months ended September 30, 2022, at its meeting held in Mumbai on Saturday October 15, 2022. The accounts have been audited by the Bank’s auditors.

AUTONOMOUS FINANCIAL RESULTS:

Profit and loss account: Quarter ended September 30, 2022

The Bank’s basic net income (excluding trading and Mark to Market losses) increased by 18.3% to Rs 28,869.8 crore for the quarter ended September 30, 2022, from Rs 24,409.7 crore for the quarter ended September 30, 2021. Total net income (net interest income plus other income) was Rs 28,616.7 crore for the quarter ended September 30, 2022.

Net interest income (interest earned less interest expense) for the quarter ended September 30, 2022 increased by 18.9% to Rs 21,021.2 crore from Rs 17,684.4 crore for the quarter ended September 30, 2021. Base net interest margin was 4.1% on total assets, and 4.3% on an interest-earning assets basis.

The four components of other income for the quarter ended September 30, 2022 were fees and commissions of Rs 5,802.9 crore (Rs 4,945.9 crore in the corresponding quarter of the previous year), foreign exchange income and derivatives of Rs 947.8 crore (Rs 867.3 crore in corresponding quarter of prior year), loss on sale/revaluation of investments of Rs 253.1 crore (gain of Rs 675.5 crore in corresponding quarter of the previous year) and miscellaneous income, including recoveries and dividends, of Rs 1,097.9 crore (Rs 912.1 crore in the corresponding quarter of the previous year). Other income, excluding trading and Mark to Market losses, increased 16.7% in the quarter ended September 30, 2021.

Operating expenses for the quarter ended September 30, 2022 were Rs 11,224.6 crore, an increase of 21.0% from Rs 9,277.9 crore in the corresponding quarter of the year former. The cost/income ratio for the quarter was 39.2%.

Pre-provision operating profit (PPOP) was Rs 17,392.2 crore. PPOP, excluding trading and Mark to Market losses, increased by 16.6% during the quarter ended September 30, 2021.

Provisions and contingencies for the quarter ended 30 September 2022 amounted to Rs 3,240.1 crore (comprised of specific loan loss provisions of Rs 3,000.4 crore and general and other provisions of Rs 239.7 crore rupees) compared to 3,924.7 crore rupees for the quarter ended September 30, 2021.

The total cost of credit ratio was 0.87%, compared to 1.30% for the quarter ending September 30, 2021.

Profit before tax (PBT) for the quarter ended September 30, 2022 was Rs 14,152.0 crore. After providing Rs 3,546.3 crore for taxation, the Bank made a net profit of Rs 10,605.8 crore, an increase of 20.1% from the quarter ended September 30, 2021.

Balance sheet: As of September 30, 2022

The total balance sheet size as of September 30, 2022 was Rs 2,227,893 crore compared to Rs 1,844,845 crore as of September 30, 2021, representing a growth of 20.8%.

Total deposits showed healthy growth and stood at Rs 1,673,408 crore as of September 30, 2022, an increase of 19.0% from September 30, 2021. CASA deposits increased by 15.4% with savings account deposits at Rs 529,745 crore and current account deposits at Rs 229,951 crore. Term deposits stood at Rs 913,712 crore, an increase of 22.1% over the corresponding quarter of the previous year, making CASA deposits account for 45.4% of total deposits as of 30 September 2022.

Total advances as of September 30, 2022 were Rs 1,479,873 crore, an increase of 23.4% from September 30, 2021. Gross of transfers through interbank participation certificates and rediscounted bills, the total advances increased by approximately 25.8% compared to September 30, 2021. Domestic retail loans increased by 21.4%, commercial and rural bank loans increased by 31.3% and business loans and other wholesale loans increased by 27.0%. Advances abroad constituted 3.1% of total advances.

Half-year ended September 30, 2022

For the six months ended September 30, 2022, the Bank realized a total income of Rs 87,742.2 crore compared to Rs 75,525.6 crore during the corresponding period of the previous year. Net income (net interest income plus other income) for the six months ended September 30, 2022 was Rs 54,486.4 crore compared to Rs 48,382.6 crore for the six months ended September 30, 2021. six months ended September 30, 2022 was Rs 19,801.8 crore, up 19.5% from the corresponding six months ended September 30, 2021.

Capital adequacy:

The Bank’s total capital adequacy ratio (CAR) under Basel III guidelines (including earnings for the six months ended September 30, 2022) was 18.0% as at September 30, 2022 (20.0% as of September 30, 2021) against a regulatory requirement of 11.7% which includes a capital conservation buffer of 2.5%, and an additional requirement of 0.2% due to the fact that the Bank is identified as a national bank of Systemically Important (D-SIB). CAR Tier 1 was 17.1% as of September 30, 2022, compared to 18.7% as of September 30, 2021. The Common Equity Tier 1 capital ratio was 16.3% as of September 30, 2022. according to the risks were ? 1,477,855 crore (compared to Rs 1,190,270 crore as of September 30, 2021).

NETWORK

As of September 30, 2022, the Bank’s distribution network had 6,499 branches and 18,868 cash dispensers/cash deposit and withdrawal machines (CDM) in 3,226 towns/villages compared to 5,686 branches and 16,642 cash dispensers. tickets/CDM in 2,929 cities/villages as of September 30, 2021. 50% of our agencies are in semi-urban and rural areas. In addition, we have 15,691 business correspondents, who are mainly occupied by common service centers (CSC). The workforce was 161,027 at September 30, 2022 (compared to 129,341 at September 30, 2021).

ASSET QUALITY

Gross non-performing receivables amount to 1.23% of gross advances as of September 30, 2022, compared to 1.35% as of September 30, 2021. Net non-performing receivables amount to 0.33% of net advances as of September 30 2022.

SUBSIDIARIES

The Bank’s subsidiaries prepare their financial results in accordance with Indian Accounting Standards Notified (“Ind-AS”). For the purposes of its statutory compliance, the Bank prepares and presents its financial results in accordance with Indian GAAP. Therefore, the Bank’s subsidiaries, for the purpose of the Bank’s consolidated financial results, prepare “information suitable for consolidation” based on recognition and measurement principles in accordance with Indian GAAP. The financial figures of the Bank’s subsidiaries mentioned below are Ind-AS compliant.

HDFC Securities Limited (HSL) is one of India’s leading retail brokerage firms. As of September 30, 2022, the Bank held 95.8% of the capital of HSL. For the quarter ended September 30, 2022, HSL’s total revenue was Rs 468.2 crore, compared to Rs 489.5 crore for the quarter ended September 30, 2021. Profit after tax for the quarter was Rs 190.9 crore, compared to Rs 239.6 crore for the quarter ended September 30, 2021.

As of September 30, 2022, HSL had 215 branches in 147 cities/towns nationwide.

HDB Financial Services Limited (HDBFSL) is a non-banking, non-depository financial company offering a wide range of lending and asset finance products to individuals, start-up businesses and micro-enterprises. As of September 30, 2022, the Bank held 94.9% of the capital of HDBFSL.

For the quarter ended September 30, 2022, HDBFSL’s net revenue was Rs 2,201.3 crore compared to Rs 1,916.7 crore for the quarter ended September 30, 2021, representing a growth of 14.9%. Profit after tax for the quarter ended September 30, 2022 was Rs 471.4 crore compared to Rs 191.7 crore for the quarter ended September 30, 2021.

The total loan portfolio was Rs 63,112 crore as of September 30, 2022. Stage 3 loans accounted for 4.88% of gross loans. As of September 30, 2022, the total CAR was 20.8% and the Level I CAR was 16.0%.

As of September 30, 2022, HDBFSL had 1,407 branches in 1,009 cities/towns.

CONSOLIDATED FINANCIAL RESULTS

Consolidated net profit for the quarter ended September 30, 2022 was Rs 11,125 crore, up 22.3%, from the quarter ended September 30, 2021. Consolidated advances increased by 22.8% from Rs 1,249,331 crore as of September 30, 2021 to Rs 1,533,945 crore as of September 30, 2022.

Consolidated net profit for the six months ended September 30, 2022 was Rs 20,704 crore, up 21.7%, from the six months ended September 30, 2021.

Sallie R. Loera