HDFC Bank posts its highest-ever quarterly net profit in Q2
HDFC Bank has announced its financial results for the second quarter of the fiscal year 2023-24 (Q2FY24), showing an impressive 50.6% increase in standalone net profit. The bank's net profit soared to Rs. 15,976.11 crore, up from Rs. 10,605.78 crore during the same period last year. Additionally, HDFC Bank's net interest income (NII) grew by 30.27%, reaching Rs. 27,385.23 crore compared to Rs. 21,021.16 crore in the previous year.
Interest margins and provisions
The bank's core interest margin stood at 3.65% of its total assets. In Q2FY24, the pre-provision operating profit (PPOP) experienced a substantial growth of 30.5%, reaching Rs. 22,694 crore, up from Rs. 17,392 crore in the same quarter of the prior year. Provisions and contingencies for the quarter ending on September 30 amounted to Rs. 2,904 crore, a decrease from Rs. 3,240 crore in the same period of the previous year.
HDFC Bank's NPA performance
Gross NPAs were at 1.34% of gross advances as of September 30, 2023, as against 1.41% on a proforma merged basis as of June 30, 2023, and 1.23% as of September 30, 2022. Net NPAs were at 0.35% of net advances as of September 30, 2023. The results mark the first quarterly earnings report following the merger of HDFC Bank with parent HDFC on July 1 in a $40bn deal. HDFC Bank closed 0.4% lower at Rs. 1,529.60 on NSE.
