HDFC Bank, India’s largest private lender, on Saturday (July 16) reported a 19 per cent year-on-year (YoY) jump in standalone net profit to Rs 9,195.55 crore for the quarter ended June 30, 2022. The bank had registered a net profit of Rs 7,729.64 crore in the year-ago period.

Analysts in an ET NOW poll had predicted PAT at Rs 9,800 crore.

The bank reported a total revenue growth of 13 per cent to Rs 41,560.27 crore in June 2022 quarter as against Rs 36,771.47 crore in June 2021 quarter. On a sequential basis, the profit number was down by 8.9 per cent from Rs 10,055.18 crore whereas revenue marginally rose from Rs 41,085.78 crore.

Net interest income (NII) grew by 14.5 per cent YoY to Rs 19,481.4 crore from Rs 17,009 crore for the quarter ended 30 June, 2021. It was driven by advances growth of 22.5 per cent, deposits growth of 19.2 per cent and total balance sheet growth of 20.3 per cent. Core interest margin was at 4 per cent on total assets and 4. 2 per cent based on interest earning assets.

Pre-provision Operating Profit (PPOP) was at Rs 15,367.8 crore. PPOP, excluding trading and Mark to Market losses, grew by 14.7 per cent over the quarter ended June 30, 2021. Provisions and contingencies for the Q1FY23 were Rs 3,187.7 crore (which were specific loan loss provisions) as against total provisions of Rs 4,830.8 crore for Q1FY22, the bank said in a statement.

The lender said gross non performing assets (GNPA) was lower in Q1FY23 at 1.28 per cent compared with 1.47 per cent in Q1 FY22. It was, however, higher than 0.32 per cent reported in Q4FY22. Net non performing assets (NNPA) of the lender dropped to 0.35 per cent in Q1 FY23 as against 0.48 per cent in Q1 FY22 but was marginally higher than 0.32 per cent in Q4FY22.

Many analysts say the lender has seen loan growth and asset quality improve as business nearly returned to their pre-Covid mode of operations.

As on June 30, the bank’s Basel III capital adequacy ratio was at 18.1 per cent versus 19.1 per cent a year ago. The regulatory requirement is 11.7 per cent, the lender mentioned.

HDFC Bank added 725 branches and 29,039 employees over the last 12 months, whereas 36 branches and 10,932 employees were added in the said quarter, it said in a release.