The Bank’s consolidated net revenue grew by 14.7% to ? 760.4 billion for the quarter ended September 30, 2024 from ? 663.2 billion for the quarter ended September 30, 2023.
FinTech BizNews Service
Mumbai, 19 October, 2024: The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarter and half year ended September 30, 2024, at its meeting held in Mumbai on Saturday, October 19, 2024. The accounts have been subjected to a 'Limited Review' by the statutory auditors of the Bank.
CONSOLIDATED FINANCIAL RESULTS:
The Bank’s consolidated net revenue grew by 14.7% to Rs 760.4 billion for the quarter ended September 30, 2024 from Rs 663.2 billion for the quarter ended September 30, 2023. The consolidated profit after tax for the quarter ended September 30, 2024 was Rs 178.3 billion. The consolidated PAT adjusted for trading & mark to market gains and tax credits in the prior year, grew by 17.4% over the quarter ended September 30, 2023. The consolidated PAT for the half year ended September 30, 2024 was Rs 343.0 billion. Earnings per share for the quarter ended September 30, 2024 was Rs 23.4 and book value per share as of September 30, 2024 was Rs 631.4.
STANDALONE FINANCIAL RESULTS:
Profit & Loss Account: Quarter ended September 30, 2024
The Bank’s net revenue grew by 9.2% to Rs 416.0 billion for the quarter ended September 30, 2024 from Rs 380.9 billion for the quarter ended September 30, 2023.
Net interest income (interest earned less interest expended) for the quarter ended September 30, 2024 grew by 10.0% to Rs 301.1 billion from Rs 273.9 billion for the quarter ended September 30, 2023. Core net interest margin was at 3.46% on total assets, and 3.65% based on interest earning assets.
Other income (non-interest revenue) for the quarter ended September 30, 2024 was Rs 114.8 billion as against Rs 107.1 billion in the corresponding quarter ended September 30, 2023. The four components of other income for the quarter ended September 30, 2024 were fees & commissions of Rs 81.4 billion (Rs 69.4 billion in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of Rs 14.6 billion (Rs 12.2 billion in the corresponding quarter of the previous year), net trading and mark to market gain of Rs 2.9 billion (gain of Rs 10.4 billion in the corresponding quarter of the previous year) and miscellaneous income, including recoveries and dividend of Rs 15.9 billion (Rs 15.1 billion in the corresponding quarter of the previous year).
Operating expenses for the quarter ended September 30, 2024 were Rs 168.9 billion, an increase of 9.7% over Rs 154.0 billion during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 40.6%.
Provisions and contingencies for the quarter ended September 30, 2024 were Rs 27.0 billion as against Rs 29.0 billion for the quarter ended September 30, 2023.
The total credit cost ratio was at 0.43%, as compared to 0.49% for the quarter ending September 30, 2023.
Profit before tax (PBT) for the quarter ended September 30, 2024 was at Rs 220.1 billion. Profit after tax (PAT) for the quarter was at Rs 168.2 billion. PAT, adjusted for trading & mark to market gains and tax credits in the prior year, grew by 17.0% over the quarter ended September 30, 2023.
Balance Sheet: As of September 30, 2024
Total balance sheet size as of September 30, 2024 was Rs 36,881 billion as against Rs 34,163 billion as of September 30, 2023.
Total Deposits were at Rs 25,001 billion as of September 30, 2024, an increase of 15.1% over September 30, 2023. CASA deposits grew by 8.1% with savings account deposits at Rs 6,081 billion and current account deposits at Rs 2,754 billion. Time deposits were at Rs 16,165 billion, an increase of 19.3% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 35.3% of total deposits as of September 30, 2024.
The Bank’s average deposits were Rs 23,540 billion for the September 2024 quarter, a growth of 15.5% over Rs 20,385 billion for the September 2023 quarter, and 3.1% over Rs 22,831 billion for the June 2024 quarter.
The Bank’s average CASA deposits were Rs 8,084 billion for the September 2024 quarter, a growth of 7.3% over Rs 7,535 billion for the September 2023 quarter, and were lower by 0.3% over Rs 8,106 billion for the June 2024 quarter.
Gross advances were at Rs 25,190 billion as of September 30, 2024, an increase of 7.0% over September 30, 2023. Grossing up for transfers through inter-bank participation certificates, bills rediscounted and securitisation / assignment, advances under management grew by 8.0% over September 30, 2023. Retail loans grew by 11.3%, commercial and rural banking loans grew by 17.4% and corporate and other wholesale loans were lower by 12.0%. Overseas advances constituted 1.7% of total advances.
The Bank’s advances under management, on an average basis, were Rs 25,639 billion for the September 2024 quarter, a growth of 10.2% over Rs 23,266 billion for the September 2023 quarter, and a growth of 1.2% over Rs 25,327 billion for the June 2024 quarter.
Half Year ended September 30, 2024
For the half year ended September 30, 2024, the Bank earned a total income of Rs 1,692 billion as against Rs 1,362 billion in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the half year ended September 30, 2024 were Rs 821 billion, as against Rs 709 billion for the half year ended September 30, 2023. Profit after tax for the half year ended September 30, 2024 was Rs 330 billion, up by 18.1% over the corresponding half year ended September 30, 2023.
Capital Adequacy:
The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 19.8% as on September 30, 2024 (19.5% as on September 30, 2023) as against a regulatory requirement of 11.7%. Tier 1 CAR was at 17.8% and Common Equity Tier 1 Capital ratio was at 17.3% as of September 30, 2024. Risk-weighted Assets were at Rs 24,813 billion.
NETWORK
As of September 30, 2024, the Bank’s distribution network was at 9,092 branches and 20,993 ATMs across 4,088 cities / towns as against 7,945 branches and 20,596 ATMs across 3,836 cities / towns as of September 30, 2023. 51% of our branches are in semi-urban and rural areas. In addition, we have 15,217 business correspondents, which are primarily manned by Common Service Centres (CSC). The number of employees were at 2,06,758 as of September 30, 2024 (as against 1,97,899 as of September 30, 2023).
ASSET QUALITY
Gross non-performing assets were at 1.36% of gross advances as on September 30, 2024 (1.19% excluding NPAs in the agricultural segment), as against 1.33% as on June 30, 2024 (1.16% excluding NPAs in the agricultural segment), and 1.34% as on September 30, 2023 (1.20% excluding NPAs in the agricultural segment). Net non-performing assets were at 0.41% of net advances as on September 30, 2024.
SUBSIDIARIES
Amongst the Bank’s key subsidiaries, HDFC Life Insurance Company Ltd and HDFC ERGO General Insurance Company Ltd prepare their financial results in accordance with Indian GAAP and other subsidiaries do so in accordance with the notified Indian Accounting Standards ('Ind-AS'). The financial numbers of the subsidiaries mentioned herein below are in accordance with the accounting standards used in their standalone reporting under the applicable GAAP.
HDB Financial Services Ltd (HDBFSL), is a non-deposit taking NBFC in which the Bank holds a 94.5% stake. For the quarter ended September 30, 2024, HDBFSL’s net revenue was at Rs 24.1 billion. Profit after tax for the quarter ended September 30, 2024 was Rs 5.9 billion compared to Rs 6.0 billion for the quarter ended September 30, 2023. Profit after tax for the half year ended September 30, 2024 was Rs 11.7 billion. The total loan book was Rs 986 billion as on September 30, 2024. Stage 3 loans were at 2.10% of gross loans. Total CAR was at 19.3% with Tier-I CAR at 14.6%.
HDFC Life Insurance Company Ltd (HDFC Life), in which the Bank holds a 50.3% stake, is a leading life insurance solutions provider. Profit after tax for the quarter ended September 30, 2024 was Rs 4.3 billion compared to Rs 3.8 billion for the quarter ended September 30, 2023, a growth of 14.9%. Profit after tax for the half year ended September 30, 2024 was Rs 9.1 billion.
HDFC ERGO General Insurance Company Ltd (HDFC ERGO), in which the Bank holds a 50.5% stake, offers a range of general insurance products. Profit after tax for the quarter ended September 30, 2024 was Rs 2.0 billion, as against profit after tax of Rs 2.4 billion for the quarter ended September 30, 2023. Profit after tax for the half year ended September 30, 2024 was Rs 3.3 billion.
HDFC Asset Management Company Ltd (HDFC AMC), in which the Bank holds a 52.5% stake, is the Investment Manager to HDFC Mutual Fund, and offers a comprehensive suite of savings and investment products. For the quarter ended September 30, 2024, HDFC AMC’s Quarterly Average Assets Under Management were approximately Rs 7,588 billion. Profit after tax for the quarter ended September 30, 2024 was Rs 5.8 billion compared to Rs 4.4 billion for the quarter ended September 30, 2023, a growth of 31.8%. Profit after tax for the half year ended September 30, 2024 was Rs 11.8 billion.
HDFC Securities Ltd (HSL), in which the Bank holds a 94.9% stake, is amongst the leading broking firms. For the quarter ended September 30, 2024, HSL’s total revenue was Rs 9.1 billion. Profit after tax for the quarter ended September 30, 2024 was Rs 3.2 billion, as against Rs 2.1 billion for the quarter ended September 30, 2023, a growth of 47.1%. Profit after tax for the half year ended September 30, 2024 was Rs 6.1 billion.
