Net profit at HDFC Bank increased by 19% to Rs 9,196 crore in the first quarter, while Nil increased by 14.5%

The largest private lender in the nation, HDFC Bank, reported a 19 percent year-over-year (YoY) increase in its net profit for the April-June quarter at Rs 9,196 crore after deducting Rs 2,984.1 crore for taxes on Saturday.

In the same quarter last year, HDFC Bank reported a net profit of Rs 7,729.64 crore.

Net interest income (NII) for the June quarter increased over the same quarter previous year by 14.5 percent, to Rs 19,481.4 crore. Deposit growth of 19.2 percent, advances growth of 22.5 percent, and overall balance sheet growth of 20.3 percent were the main drivers.

The private lender’s net revenue increased by 19.8 percent to Rs 27,181.4 crore for the June quarter from Rs 22,696.5 crore for the same quarter previous year (excluding trading and Market to Market losses).

For the quarter ending in April-June, there were Rs 25,869.6 crores in total net revenues (net interest income plus other income).

The core net interest margin was 4.2 percent based on interest-earning assets and 4.0 percent based on total assets. The bank stated in a regulatory filing that it “continued to add new liability relationships at a solid pace of 2.6 million throughout the quarter.”

In contrast to 1.47 percent on June 30 of previous year, gross non-performing assets (NPA) were at 1.28 percent of gross loans as of June 30, this year (1.06 percent excluding NPAs in the seasonal agricultural industry) (1.26 percent excluding NPAs in the seasonal agricultural segment). As of June 30, 2022, net NPA was 0.35 percent of net advances.

The amount of pre-provision operating profit (PPOP) was Rs 15,367.8 crore. PPOP increased by 14.7 percent over the quarter ending June 30 of the previous year, trading and Mark to Market losses excluded.

In comparison to total provisions of Rs 4,830.8 crore for Q1FY22, provisions and contingencies for the first quarter of FY23 were Rs 3,187.7 crore (which were particular loan loss provisions).

However, global brokerage BNP Paribas predicted that the lender’s bottom line would only increase by 13.4% (Rs 9,284.5 million). JPMorgan estimated the growth to be 32.4 percent (or Rs 10,232 crore) faster year over year.

Motilal Oswal Financial Services and Emkay Global Financial Services, two domestic brokerages, anticipated PAT (profit after tax) to increase by much to 20% (Rs 9,280 crore) year over year.

Shares of HDFC Bank closed Friday’s trading session on the NSE 0.96 percent higher at Rs 1,364.00 per share, ahead of the results.