HDFC Bank Q2 Results Today Highlights: Net profit at ₹15,980 crore:On Monday, October 16, 2023, the largest private sector lender in the nation, HDFC Bank, revealed its earnings for the second quarter of FY24. This is the bank’s first quarterly financial result following its July 1 merger with the mortgage lender Housing Development Finance Corporation (HDFC). In Q2FY24, the bank reported an increase in net profit and net interest income year over year.
HDFC Bank Q2 Results today highlights
These are the salient features of the lender’s fiscal performance for the quarter ending in September 2023.
- Net profit rises by 6 percent YoY to ₹15,980 crore.
- NII up 6.7 percent YoY at ₹ ₹27,385 crore.
- Operating profit up 30.5 percent YoY to 22,694 crore.
- Operating expenses surge by 37.2 percent YoY to ₹15,399 crore.
- Net revenue increased by 114 percent YoY to ₹66,317 crore.
- Gross NPA stood at 1.34 percent, net NPA increased to 0.35 percent.
HDFC Bank Q2 Results today highlights: Net revenue up 114% to ₹66,317 crore
HDFC Bank Q2 Results Live: The bank in a release said its consolidated net revenue grew by 114.8 percent to ₹b66,317 crore in Q2FY23 from ₹30,871 crore in the year-ago period. “The consolidated profit after tax for the half year ended September 30, 2023 was ₹29,182 crore, up 40.9%, over the half year ended September 30, 2022,” it added.
HDFC Bank Q2 Results today highlights:HDFC Bank Q2 Results Live: Gross, net NPA jump QoQ
The lender’s gross non-performing assets increased to 1.34 percent in Q2FY23 from 1.17 percent in the June 2023 quarter before. Similarly, from 0.30 percent in the previous quarter to 0.35 percent this quarter, the net NPA increased.
HDFC Bank Q2 Results today highlights:Operating profit up 30.5% YoY, CASA ratio at 37.6%
The lender’s operational profit increased 30.5 percent year over year to ₹22,694 crore in the September 2023 quarter. The CASA ratio for the bank is 37.6%.
HDFC Bank Q2 Results today highlights:NII up 6.7% on-year
In contrast to predictions that the NII would decline after the merger with the parent company, HDFC Bank has revealed an increase of 6.7 percent year over year. Compared to the pre-merger period of Q2FY23, when it was ₹26,660 crore, the NII came in at ₹27,385 crore.
HDFC Bank Q2 Results today highlights:Net profit increased by 6% from Q2FY23’s pre-merger period.
In comparison to the pre-merger period of Q2FY23, when the lender reported a net profit of ₹15,060 crore, the net profit is up 6%.
HDFC Bank Q2 Results today highlights:NII at ₹27,385 crore
While the private lender’s net interest income was ₹27,385 crore during the quarter, HDFC Bank had a net profit of ₹15,980 crore in Q2FY24.
HDFC Bank Q2 Results today highlights:Net profit rises
HDFC Bank net profit rises to ₹15,980 crore
HDFC Bank Q2 Results today highlights:0.24% decrease in stock at closing bell
The value of each HDFC Bank share on the NSE was ₹1,532, which was a 0.24 percent decrease from the previous day’s closing, prior to the announcement of the bank’s quarterly results. The loss was slightly more severe on the BSE, where shares were trading for ₹1,529.5 apiece, down 0.47 percent from the previous closing price.
HDFC Bank Q2 Results today highlights:The combined net interest margin may drop to 3.5%.
which, according to Jefferies India, is thought to have been negatively impacted by the merger with its parent company, may show a decline in net interest margin to 3.5 percent. The brokerage company is supposed to monitor management’s opinions about HDFC Life integration.
HDFC Bank Q2 Results today highlights:Operating profit of private banks likely to grow 18% YoY
Motilal Oswal, a brokerage company, projects that in 2QFY24, private banks (apart from HDFC Bank) would record PPoP growth of about 18% YoY (flat QoQ) and PAT growth of about 25% YoY (flat QoQ). Because of robust company development and low credit costs, earnings are expected to stay strong; but, higher operating expenses and margin compression might complicate the trajectory of overall growth.
HDFC Bank Q2 Results today highlights:The price of HDFC Bank shares is still declining.
Ahead of the publication of the September quarter earnings, the share price of HDFC Bank is still under pressure. At 2:15 pm on the BSE, HDFC Bank shares were down 0.29% at ₹1,532.35 a share.
HDFC Bank Q2 Results today highlights:Credit costs likely to drop
The credit cost of HDFC Bank is anticipated to decrease from 0.72% in Q2FY23 and 0.59% in Q1FY24 to 0.56% in Q2FY24. Since the gross NPA ratio is predicted to decline sequentially by 6 basis points to 1.34% from 1.40%, asset quality is anticipated to improve.
HDFC Bank Q2 Results today highlights:Large private banks’ loan growth seen 16.0% YoY
Loan growth for large private banks might be 4.3% QoQ and 16.0% YoY as opposed to the system’s about 15% YoY. 4.3% QoQ/18.6% YoY deposit growth is anticipated (previous quarter 2.4%/17.2%). Given that bank deposit rate increases were substantially sharper in H2FY23, we see a 3.3% QoQ reduction in NII and a potential 34bps decline in NIM to 4.1% as a result of the lag impact of deposit costs. Fees and opex would have quarterly accretion (+3%) that is equal to each other. The estimated value of core PPoP is ₹479 billion (-5.6% QoQ). Brokerage company Prabhudas Lilladher said that while core PAT might decline 6.9% QoQ to ₹307 billion, provisions would essentially remain steady at 62ps.
HDFC Bank Q2 Results today highlights:HDFC Bank is upgraded to buy by Yes Securities
HDFC Bank was not one of Yes Securities’ top recommendations, but it was upgraded to ‘Buy’ with a maintained price objective of ₹1,950 per share. Sequential loan increase on a like-for-like basis has been 4.9%. NII growth will be significantly slower than loan growth because of the surplus liquidity and cost of deposits catching up. NIM will thus sequentially decline substantially. Growth in sequential fees will mostly correspond with growth in loans. Growth in Opex will somewhat trail that in Loans. On a sequential basis, slippages would be essentially steady. Because of prudential provisioning, it said that provisions will be generally steady.