HDFC Bank Q1 results: Net profit jumps 19% to ₹9,196 crore; NII rises 14.5%

HDFC Bank, the country's largest private lender, on Saturday reported a 19% year-on-year (YoY) rise in its net profit for the April-June quarter at ₹9,196 crore after providing ₹2,984.1 crore for taxation.

HDFC Bank had posted a net profit of ₹7,729.64 crore in the year-ago period.

Net interest income (NII) for the June quarter grew by 14.5% to ₹19,481.4 crore from ₹17,009.0 crore for the same quarter last year. It was driven by advances growth of 22.5%, deposits growth of 19.2% and total balance sheet growth of 20.3%.

The private lender's net revenue (excluding trading and Market to Market losses) grew by 19.8% to ₹27,181.4 crore for the June quarter from ₹22,696.5 crore for the same quarter last year. 

The total net revenues i.e. net interest income plus other income) were ₹25,869.6 crore for the April-June quarter.

Core net interest margin was at 4.0% on total assets, and 4.2% based on interest earning assets. “We continued to add new liability relationships at a robust pace of 2.6 million during the quarter," the bank said in a regulatory filing.

Gross non-performing assets (NPA) were at at 1.28% of gross advances as on 30 June this year (1.06% excluding NPAs in the seasonal agricultural segment) as against 1.47% as on 30 June last year, (1.26% excluding NPAs in the seasonal agricultural segment). Net NPA were at 0.35% of net advances as on 30 June, 2022.

Pre-provision Operating Profit (PPOP) was at ₹15,367.8 crore. PPOP, excluding trading and Mark to Market losses, grew by 14.7% over the quarter ended 30 June last year.

Provisions and contingencies for the Q1FY23 were ₹3,187.7 crore (which were specific loan loss provisions) as against total provisions of ₹4,830.8 crore for Q1FY22.

Meanwhile, global brokerage BNP Paribas expected the lender's bottom-line to grow mere 13.4% ( ₹9,284.5 crore) YoY, JPMorgan pegged the expansion at a more aggressive pace of 32.4% ( ₹10,232 crore).

Domestic brokerages Motilal Oswal Financial Services, and Emkay Global Financial Services had expected PAT (profit after tax) to swell up to 20% ( ₹9,280 crore) YoY.

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RBL Bank back in black as lender posts Rs 201 cr profit in Q1

 

RBL Bank's net interest income (NII) rose 6 per cent to Rs 1027.1 crore in the quarter under review as against Rs 969.5 crore in the same period last fiscal.

RBL Bank bounced back in profit as the lender posted a consolidated net profit of Rs 201 crore for the quarter ended 30 June, 2022. The bank had posted a net loss of Rs 459 crore in the year-ago period.

RBL Bank's net interest income (NII) rose 6 per cent to Rs 1027.1 crore in the quarter under review as against Rs 969.5 crore in the same period last fiscal. Its net interest margin (NIM) stood at 4.36 per cent.

The bank's interest earned rose slightly over 3 per cent to Rs 2,089 crore in Q1FY23 n comparison with Rs 2,026 crore in Q1FY22.

Its June quarter provisions and contingencies came in at Rs 253 crore as against Rs 1,384 crore in the same quarter last fiscal.

Furthermore, on the asset quality front, RBL Bank's gross NPA stood at 4.08 per cent in this quarter as against 4.4 per cent in the previous quarter, while net NPA stood at 1.16 per cent versus 1.34 per cent in the previous quarter.

As of 30th June 2022, the Bank has 502 bank branches and 1,302 business correspondent branches, of which 289 are banking outlets. RBL Finserve Limited, a wholly-owned subsidiary of the bank, accounts for 789 business correspondent branches, the lender stated.

Commenting on the performance, R Subramaniakumar, MD&CEO, RBL Bank said “We have started the new financial year with a satisfactory performance on all fronts. The Bank completed the issuance of $100 million Tier 2 Notes in this quarter improving its capital adequacy further. Our focus would be to consolidate, leverage and optimize our existing platform so as to accelerate profitable growth of the balance sheet. We will continue to focus on our key niche areas of cards and microfinance, while accelerating the diversification across more retail products”.

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IDBI Bank Q1 Results: Profit rises 25%

 IDBI Bank on Thursday reported a 25 per cent jump in standalone net profit at Rs 756 crore in the June quarter, helped by a decline in bad loans. The LIC-controlled private sector bank had posted a net profit of Rs 603.30 crore in April-June 2021-22.

However, the total income declined to Rs 5,780.99 crore in the first quarter of the current fiscal from Rs 6,554.95 crore in the year-ago period.

The bank's asset quality improved with gross Non-Performing Assets (NPAs) falling to 19.90 per cent of the gross advances as of June 2022 from 22.71 per cent as of June 2021, according to a regulatory filing.

Net NPAs too came down to 1.25 per cent from 1.67 per cent at the end of the first quarter of the last fiscal.

The bank's provisions for bad loans and contingencies stood at Rs 1,751.80 crore in the June quarter, up substantially from Rs 888.05 crore in the year-ago period.

As a result, provisions (other than tax) and contingencies declined significantly to Rs 959.23 crore from Rs 1,844.07 crore a year ago.

Provision Coverage Ratio (including Technical Write-Offs) improved to 97.79 per cent as on June 30, 2022 as against 94.42 per cent last year.

However, the Net Interest Income (NII) declined to Rs 2,488 crore during the period under review. The same stood at Rs 2,506 crore in the preceding year.

During the same time, Net Interest Margin (NIM) declined to 4.02 per cent as compared to 4.06 per cent in the previous fiscal.

Capital adequacy ratio improved to 19.57 per cent in the June quarter, which was 16.23 per cent in the corresponding quarter last year.

During the quarter, the bank has sold entire stake 19.18 per cent in Asset Reconstruction Company (India) Ltd to Avenue India Resurgence Pvt Ltd for sale consideration of Rs 2,361.48 crore, resulting in profit of Rs 2,140.66 crore.

At the same time, the bank has entered into Share Purchase Agreement with Ageas Insurance International NV (Ageas) on May 19, 2022 to sell IDBI's entire remaining stake (25 per cent) in Ageas Federal Life Insurance Company Limited (AFLI) pursuant to exercise of call option by Ageas.

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IndusInd Bank Q1 Results: Profit rises 64% YoY to Rs 1,603 crore, beats estimates

 

IndusInd Bank on Wednesday reported a 64.44 per cent year-on-year (YoY) rise in standalone net profit at Rs 1,603.29 crore compared with Rs 974.95 crore in the corresponding quarter last year.

The profit figure beat Rs 1,470 crore profit anticipated by anlaysts in an ET NOW poll.

Interest earned for the quarter rose 8.01 per cent YoY to Rs 8,181.77 crore from Rs 7,574.70 crore.

The private lender made provisions and contingencies worth Rs 1,250.99 crore, which was lower than Rs 1,461.62 crore in March quarter and Rs 1,779.33 crore in the year-ago quarter.

Gross non-performing assets as percentage of total advances stood at 2.35 per cent, higher than March quarter's 2.27 per cent, but lower than year-ago's 2.88 per cent.

In its business update earlier this month, the bank said its total deposits jumped 13 per cent to Rs 3,03,094 crore in June quarter compared with Rs 2,67,630 crore in the year-ago quarter. The bank's net advances were up 18 per cent at Rs 2,49,541 crore against Rs 2,10,727 crore in the previous year.

Retail deposits and deposits from small business customers amounted to Rs 1,24,105 crore as of June 30 compared with Rs 1,20,507 crore as of March 31, 2022.

The CASA ratio increased to 43.2 per cent in June quarter from 42.8 per cent in the March quarter and 42.1 per cent in the year-ago quarter, the lender said.

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