On October 15, HDFC Bank reported a consolidated net profit of Rs 11,125 crore for the quarter that ended September 30 (Q2FY23). The figure was 22.3% higher than the profit for the same period in the previous fiscal year. This was supported by strong 23% loan growth and raw asset quality.

The bank’s standalone net profit rose 20% year-on-year to Rs 10,606 crore, while its net interest income (NII) rose 18.9% to Rs 2,102.12 crore compared to Rs 1,768.44 crore in Q2FY22. Domestic retail loans rose 21.4%, while commercial and rural bank loans rose 31.3%. In addition, business loans and other wholesale loans rose by 2%.

The bank’s asset quality also improved, with gross non-performing assets (GNPA) at 1.23% compared to 1.28% a year earlier. Net non-performing assets (NNPA) represented 0.33% of net advances as of September 30, 2022, compared to 0.35% in Q1FY23.

Operating expenses for the quarter were Rs 11,224.6 crore, up 21% year-on-year. The cost-to-income ratio for the second quarter of fiscal 2023 was 39.2%.

Provisions and contingency expenses fell to Rs 3,240.1 crore compared to Rs 3,924.7 crore in the corresponding quarter of the previous fiscal. Meanwhile, the core net interest margin (NIM) stood at 4.1% of total assets.
The total balance sheet size stood at Rs 2,227,893 crore as of September 30, 2022, compared to Rs 1,844,845 crore as of September 30, 2021, an increase of 20.8%.

The lender also showed healthy growth in total deposits at Rs 1,673,408 crore as of September 30, 2022, up 19% year-on-year. CASA deposits rose 15.4%, with savings account deposits of Rs 529,745 crore and current account deposits of Rs 229,951 crore.