HDFC Bank had a good quarter! They made a profit of Rs 16,372.54 crore, which is 33.54% more than the same time last year. This profit is what they earned after subtracting their expenses. Their earnings from interest went up by 23.9% compared to last year, reaching Rs 28,470 crore. However, it was a bit less than what experts expected, who thought it would be 25% more. Overall, HDFC Bank did well in the last three months!
The profit before setting aside money for unforeseen expenses went up by 24.3%, reaching around Rs 23,650 crore. But, the money set aside for such unexpected costs increased to about Rs 4,220 crore from Rs 2,810 crore in the same quarter last year. The bank also mentioned that its core net interest margin (NIM) was 3.4% on all assets and 3.6% on assets that earn interest.
As of December 31, 2023, the bank’s bad loans were 1.26% of the total money it lent, which is a bit better than the 1.34% reported on September 30, 2023, and the 1.23% on December 31, 2022. The net bad loans were 0.31% of the money the bank lent as of December 31.
In the last three months of 2023, the bank made around Rs 11,140 crore from things other than interest, which is much more than the Rs 8,500 crore it made in the same three months of 2022. Out of this, Rs 6,940 crore came from fees and commissions, up from Rs 6,050 crore the year before. The bank also made more money from foreign exchange and derivatives (Rs 1,210 crore compared to Rs 1,070 crore) and trading gains (Rs 1,470 crore compared to Rs 260 crore). Miscellaneous income, which includes recoveries and dividends, was Rs 1,520 crore, up from Rs 1,110 crore.
The bank spent more money on day-to-day operations, with expenses going up by 28.1%, reaching Rs 15,960 crore from Rs 12,460 crore in the same three months of the previous year. The bank’s cost-to-income ratio for these three months was 40.3%.
HDFC Bank did well with its money according to the rules (Basel II). The amount of money it has as a backup (Capital Adequacy Ratio or CAR) was 18.4% by the end of December 2023. It’s a bit less than the 19.4% from a year ago, but it’s still more than the required 11.7%.
As of December 31, 2023, HDFC Bank spread its presence with 8,091 branches and 20,688 ATMs in 3,872 cities/towns. This is more than what they had on December 31, 2022, which was 7,183 branches and 19,007 ATMs in 3,552 cities/towns. Over half of their branches are in semi-urban and rural areas.
HDFC Bank also works with 15,053 business correspondents, mostly managed by Common Service Centres (CSC). The number of people working for the bank increased to 208,066 by December 31, 2023, from 166,890 on December 31, 2022, as mentioned in a BSE filing.
The bank gave out more loans to regular people (domestic retail loans went up by 111.1%), businesses in smaller towns (commercial and rural banking loans grew by 31.4%), and bigger companies (corporate and other wholesale loans, excluding certain loans of eHDFC Ltd, went up by 11.2%). A small part (1.7%) of the loans went to businesses outside of India.
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