HDFC Bank Q4FY23 PAT up 20.6% on 23.7% growth in NII

HDFC Bank reported 30% growth in total revenues for the March 2023 quarter on consolidated basis at Rs57,159cr. Revenue growth was 5.61% in sequential terms for Q4FY23. Provisions in the quarter at Rs3,179 crore, were slightly lower than the year ago and sequential quarter. The operating profit in the latest quarter took a slightly hit due to the higher impact of interest costs.

In terms of revenue mix, the retail banking and corporate banking revenues surged sequentially while treasury revenues were marginally lower. Net interest income (NII) for Q4FY23 grew 23.7% to Rs23,352 crore while the core net interest margin (NIM) expanded by 20 bps to 4.3%. Operating expenses spiked by 32% yoy while the cost to income ratio for the quarter stood at 42%. Total credit cost in Q4 fell sharply to 0.67% from 0.96% yoy.

Financial highlights for Mar-23 compared yoy and sequentially

 HDFC Bank Ltd    
Rs in Crore

Mar-23

Mar-22

YOY

Dec-22

QOQ

Total Income

₹ 57,159

₹ 43,960

30.02%

₹ 54,123

5.61%

Operating Profit

₹ 19,962

₹ 17,720

12.65%

₹ 20,180

-1.08%

Net Profit

₹ 12,594

₹ 10,443

20.60%

₹ 12,698

-0.82%

      
Diluted EPS

₹ 22.46

₹ 18.73

 

₹ 22.68

 
Operating Margins

34.92%

40.31%

 

37.29%

 
Net Margins

22.03%

23.76%

 

23.46%

 
Gross NPA Ratio

1.12%

1.17%

 

1.23%

 
Net NPA Ratio

0.27%

0.32%

 

0.33%

 
Return on Assets

0.53%

0.52%

 

0.56%

 
Capital Adequacy

19.26%

18.90%

 

17.66%

 

 

Operating profits and net profits were higher on yoy basis but lower on sequential basis due to a spike in interest costs and other operating expenses. Total deposits grew 20.8% yoy in Q4FY23 with CASA deposits comprising 44.4% of the total deposits. Total advances grew 16.9% in the quarter, an exceptional case where the deposit growth has been much faster than the loan growth. 

Gross NPA ratio remained subdued at 1.12%, lower than the year ago quarter and the sequential quarter. Net NPAs at 0.27% indicate that most potential loan losses have been substantially provided for. Return on assets is robust at 0.53%. For the fiscal year FY23, HDFC Bank declared dividend of Rs19 per share.

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