HDFC Q1 outcomes: That is HDFC Financial institution’s first earnings report for the reason that completion of its mega-merger with Housing Improvement Finance Company (HDFC).
HDFC Financial institution on Monday posted standalone internet revenue at Rs 11,951.7 crore for the primary quarter of FY24 versus CNBC-TV18 ballot of Rs 11,433.5 crore. The lender had posted a revenue of Rs 9,195.99 crore within the year-ago interval. The financial institution’s internet curiosity earnings (NII) for Q1FY24 was at Rs 23,599.1 crore as in opposition to CNBC-TV18’s ballot of Rs 23,922.6 crore.
The provisions stood at Rs 2,860 crore versus Rs 3,187.7 crore year-on-year (YoY) and Rs 2,685.4 crore quarter-on-quarter (QoQ). The online curiosity margin (NIM) was flat at 4.1 p.c QoQ.
The financial institution’s internet income grew by 26.9 p.c to Rs 32,829 crore from Rs 25,870 crore within the year-ago interval. Different earnings (non-interest income) was reported Rs 9,230 crore.
HDFC Financial institution’s asset high quality was largely secure. The financial institution’s gross non-performing belongings (NPA) elevated 5.7 p.c to Rs 19,045.1 crore from Rs 18,019 crore, whereas Internet NPA rose 9.4 p.c to Rs 4,776.9 crore from Rs 4.368.4 crore, QoQ.
The merger and enterprise replace
HDFC Financial institution’s merger with HDFC Restricted additionally turned efficient beginning July 1. Primarily based on the Q1 enterprise replace from the merged entities of HDFC Financial institution and HDFC Ltd, it’s noticed that deposits have elevated by 16.2 p.c in comparison with the earlier yr and roughly 1.2 p.c in comparison with the earlier quarter. Advances, however, have proven a development fee of simply over 13 p.c yr on yr and roughly 0.7 p.c sequentially.
The financial institution’s deposits aggregated to Rs 19,13,000 crore as on June 30, up 19.2 p.c as in opposition to Rs 16,04,800 crore because the year-ago quarter of final yr. Deposits have been up 1.6 p.c over Rs 18,83,400 crore as on March 31, 2023.
Retail deposits climbed by Rs 38,000 crore throughout the quarter below assessment, and have been up 21.5 p.c om-year or 2.5 p.c quarter-on-quarter. Wholesale deposits rose 9 p.c on-year however have been down 2.5 p.c quarter-on-quarter.
Inventory efficiency
On the time of scripting this report, the shares of HDFC Financial institution have been buying and selling 1.12 p.c larger at Rs 1,663.60 apiece on the BSE.
HDFC Financial institution inventory has elevated 4 p.c within the final one month and over 22 p.c up to now one yr. The lender has allotted over 311 crore new shares of the financial institution to shareholders of merged entity HDFC Ltd, in line with a July 14 change submitting by the financial institution.
Shopping for alternative
In line with market knowledgeable Prakash Diwan, this can be a nice alternative to purchase one of the crucial formidable stability sheet within the banking area globally and within the Indian context.
“These numbers inform that it is simply the beginning of a brand new period, which goes to be even higher. I’m fairly optimistic and that is one purpose why there’s a lid on what the opposite banks inventory efficiency has been doing ever since this merger has come about. The costs of different banks will not be going wherever. However HDFC Financial institution goes to garner loads of consideration and cash. So, buyers ought to soar in instantly. Except one thing is drastically unsuitable, I do not suppose buyers want to vary that stance,” he advised CNBC-TV18.