HDFC Bank's consolidated Q2 net profit zooms 22.30% to Rs11,125 cr

HDFC Bank, the largest private sector bank in India, on Saturday reported a 22.30 per cent year-on-year jump in its consolidated net profit at Rs11,125.21 crore for the quarter ended 30 September 2022.. The bank had reported a consolidated net profit of Rs9,096.19 crore in the year-ago period.

On a standalone basis, the largest private sector bank's net profit rose by over 20 per cent to Rs10,605.78 crore as against Rs8,834.31 crore in the year-ago period and Rs9,196 crore in the preceding June quarter.
The bank’s total income rose to Rs46,182 crore from Rs38,754 crore in the year-ago period, while the expenditure, excluding provisions and contingencies, climbed to Rs28,790 crore from Rs22,947 crore.
The quarter saw an improvement in overall asset quality with a reduction in the share of gross non-performing assets to 1.23 per cent from 1.35 per cent in the year-ago period and 1.28 per cent in the previous quarter. Net non-performing assets, as on 30 September 2022, stood at 0.33 per cent of net advances.
Provisions and contingencies for bad loans also dropped to Rs3,240.1 crore as against Rs3,924.7 crore in the same quarter of the previous financial year.
Net interest income (NII), or the difference between interest earned and interest expended, rose nearly 19 per cent year-on-year to Rs21,021.2 crore in the July-September 2022-23 quarter from Rs17,684.4 crore in the previous financial year.
The bank’s total advances as of 30 September 2022 stood at Rs14.4 lakh crore, an increase of 23.4 per  cent over the previous year. The balance sheet size grew nearly 21 per cent to Rs22.3 lakh crore from Rs18.4 lakh crore in the year-ago period.
HDC Bank said advances to domestic retail segment grew by 21.4 per cent, commercial and rural banking loans grew 31.3 per cent while corporate and other wholesale loans grew 27 per cent. Overseas advances constituted 3.1 per cent of total advances.
Deposits with the bank showed a healthy 19 per cent YoY increase at Rs16.73 lakh crore as of September-end. HDFC Bank’s growth in deposits comes at a time when banks are struggling to mobilise deposits amid tightening liquidity.
Current Account Savings Account (CASA) deposits grew 15.4 per cent to Rs2.3 lakh crore and Rs5.30 lakh crore, respectively..
The bank’s Capital Adequacy Ratio (CAR) as per Basel III guidelines stood at 18 per cent at the end of September against a regulatory requirement of 11.7 per cent. Tier 1 CAR was at 17.1 per cent against 18.7 per cent last year. Common Equity Tier 1 capital ratio stood at 16.3 per cent as of 30 September while risk-weighted assets stood at Rs14.78 lakh crore.