India’s largest private sector lender HDFC Bank posted its Q1 FY23 results on July 16, 2022. The bank reported a decline of 8.1% QoQ (Quarter on Quarter) in its net profit which came in at Rs 9,616 crore from Rs 10,474 crore in the previous quarter. On a YoY (Year on Year) basis, the net profit was up 21.1% to Rs 9,616 crore from Rs 7,940 crore in the year ago period.
The interest earned by the bank came in at Rs 37,273 crore, up 4.7% QoQ from Rs 35,574 crore in the previous quarter, and up 15.5% YoY from Rs 32,253 crore in the corresponding quarter in the previous fiscal year.
There was a staggering increase in the employee costs, which was up 9.6% QoQ, and 26.4% YoY to Rs 4,606 crore in the quarter under review. The bank’s Net Interest Income (NII) for the quarter under review came in at Rs 19,481 crore, up by 14.5% YoY from Rs 17,009 crore in the corresponding quarter in the previous fiscal year.
Gross NPA (Non Performing Assets) increased to 1.28% from 1.17% in the previous quarter while it reduced from 1.47% in the year ago period. The Net NPA is up at 0.35% from 0.32% in Q4 FY22, while it has come down from 0.48% in the year ago period.
The Board of Directors at its meeting held on April 23, 2022 recommended a dividend of Rs 15.50 per equity share of face value of 1/- each out of the net profits for the year ended March 31, 2022, subject to approval of the shareholders of the Bank.
HDFC Bank’s stock closed in the green at Rs 1,362.05 per share, after surging by 0.81% at the end of the intraday trading session on July 15, 2022 ahead of the bank’s Q1 FY23 results.
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Research Analyst: Bavadharini KS