India’s largest private bank, HDFC Bank, announced a 50% year-on-year (YoY) increase in its second-quarter net profit to ₹15,976 crore ($2.14 billion), surpassing analyst expectations. The bank attributed the growth to a substantial 30% YoY rise in Net Interest Income (NII) to ₹27,385 crore ($3.67 billion). The figures were released on Monday.
HDFC Bank’s market capitalization stands at a robust 139.59B USD, with a P/E Ratio of 17.51. The Revenue Growth for the last twelve months (LTM2024.Q1) was reported at 25.63%, reflecting the bank’s steady financial performance.
Other income for the bank also saw a significant increase, rising to ₹10,708 crore ($1.43 billion) from ₹7,596 crore ($1.02 billion) YoY. Provisions fell slightly to ₹2,904 crore ($389 million) from ₹3,240 crore ($435 million) YoY. The bank reported that total loans had 1.34% non-performing assets.
For the first half of the fiscal year ending September 30, HDFC Bank earned ₹1.36 lakh crore ($18.24 billion). This period saw a deposit growth of around ₹1.1 lakh crore ($14.75 billion), reaching ₹21,72,858 crore ($291 billion) as of September 30, 2023.
HDFC Bank has been experiencing accelerating revenue growth and consistently increasing earnings per share, solidifying its position as a prominent player in the bank industry.
The bank’s performance follows its merger with HDFC Ltd on July 1, forming India’s largest private bank. Operating expenses for the quarter rose by 37.2% to ₹15,399 crore ($2.07 billion).
The Current and Savings Account (CASA) deposits grew by 7.6%, with savings and current account deposits at ₹5,69,956 crore ($76.4 billion) and ₹2,47,749 crore ($33.23 billion) respectively.
Despite these positive results, HDFC Bank shares closed 0.2% lower prior to the announcement. The bank was recently downgraded to “neutral” from “buy” by Nomura, due to merger details that included a Book Value Per Share (BVPS) cut of INR23/share. The bank’s Price / Book LTM2024.Q1 stands at 3.83, and the fair value (Analyst Targets) is projected to be 82.5 USD.
In other developments, Sashidhar Jagdishan has been reappointed as CEO of HDFC Bank for another three years, starting October 27, 2023.
