HDFC Bank, India’s largest private sector lender, has reported impressive financial results for the second quarter of fiscal year 2023-24. The bank’s net profit has surged by nearly 51% to reach Rs 15,976 crore in Q2FY24, reflecting its strong growth trajectory.

Key Highlights of HDFC Bank’s Q2FY24 Results:

1. Impressive Profit Growth: HDFC Bank’s net profit registered a remarkable year-on-year (YoY) growth of almost 51% in Q2FY24, underscoring the bank’s robust performance. This translated into a net profit of Rs 15,976 crore.
2. Strong Net Revenue Growth: The bank’s net revenue exhibited an exceptional growth rate, surging by 33.1% to reach Rs 38,093 crore in Q2FY24. This substantial increase in net revenue is compared to Rs 28,617 crore in the same period of the previous year.
3. 30% Growth in Net Interest Income (NII): HDFC Bank’s net interest income (NII), which represents its core lending income, witnessed substantial growth in Q2FY24. It amounted to Rs 27,385 crore, marking an impressive 30.3% increase over the NII of Rs 21,021 crore for the corresponding quarter in the previous year.
4. Robust Non-Interest Revenue: The bank’s non-interest revenue, including other income, reached Rs 10,708 crore for the quarter, demonstrating significant growth compared to Rs 7,596 crore in the same quarter of the previous fiscal year.
5. Operational Expenses: HDFC Bank reported operational expenses of Rs 15,399 crore for the quarter. This represented a notable increase of over 37% compared to Rs 11,225 crore in Q2FY23. The cost-to-income ratio during the quarter stood at 40.4%.
6. Pre-Provision Operating Profit (PPOP): The bank’s pre-provision operating profit (PPOP) experienced impressive growth in Q2FY24, rising by 30.5% YoY to reach Rs 22,694 crore.
7. Lower Provisions and Contingencies: HDFC Bank’s provisions and contingencies for the quarter amounted to Rs 2,904 crore, which is lower than the Rs 3,240 crore recorded in the corresponding quarter of the previous year.
8. Credit Cost Ratio: The bank reported that its total credit cost ratio for the second quarter was 0.49%, reflecting a notable decrease from 0.87% in Q2FY23. This reduction is indicative of improved asset quality.
9. Balanced Asset Quality: As of September 30, 2023, HDFC Bank’s balance sheet size expanded to over Rs 34 lakh crore, compared to Rs 22,27,893 crore on September 30, 2022. The bank also maintained a balanced asset quality, with gross non-performing assets at 1.34% of gross advances and net non-performing assets at 0.35% of net advances as of September 30, 2023.

HDFC Bank’s exceptional financial performance in Q2FY24 underscores its resilience and growth potential. The bank’s robust profit growth, lower credit costs, and balanced asset quality reflect its commitment to providing financial stability and value to its stakeholders.