The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarter ended June 30, 2022, at its meeting held in Mumbai on Saturday, July 16, 2022.

HDFC Bank

The Bank’s core net revenue (excluding trading and Mark to Market losses), grew by 19.8% to Rs 27,181.4 crore for the quarter ended June 30, 2022 from Rs 22,696.5 crore for the quarter ended June 30, 2021. The total net revenues (net interest income plus other income) were Rs 25,869.6 crore for the quarter ended June 30, 2022.

Net interest Income (interest earned less interest expended) for the quarter ended June 30, 2022 grew by 14.5% to Rs 19,481.4 crore from Rs 17,009.0 crore for the quarter ended June 30, 2021, driven by advances growth of 22.5%, deposits growth of 19.2% and total balance sheet growth of 20.3%. 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 four components of other income for the quarter ended June 30, 2022 were fees & commissions of Rs 5,360.4 crore (Rs 3,885.4 crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of Rs 1,259.3 crore(Rs 1,198.7 crore in the corresponding quarter of the previous year), loss on sale/ revaluation of investments of Rs 1311.7 crore (gain of Rs 601.0 crore in the corresponding quarter of the previous year) and miscellaneous income, Including recoveries and dividend, of Rs 1,080.2 crore (Rs 603.5 crore in the corresponding quarter of the previous year). Other income, excluciing trading and Mark to Market losses, grew by 35.4% over the quarter ended June 30, 2021.

Operating expenses for the quarter ended June 30, 2022 were Rs 10,501.8 crore, an increase of 28.7% over Rs 8,160.4 crore during the corresponding quarter of the previous year. The cost-to-income ratio, excluding trading and Mark to Market losses for the quarter was at 38.6%.

Pre-provision Operating Profit (PPOP) was at Rs 15,367.8 crore. PPOP, excluding trading and Mark to Maticet losses, grew by 14.7°, over the quarter ended June 30, 2021.

Provisions and contingencies for the quarter ended June 30, 2022 were Rs 3,187.7 crore (which were comprised of specific loan loss provisions) as against total provisions of , Rs 4,830.8 crore for the quarter ended June 30, 2021.

The total credit cost ratio was at 0.91%, as compared to 1.67% for the quarter ending June 30, 2021.

Profit before tax (PBT) after trading and Mark to Market losses of Rs 1,311.7 crore in the quarter, was at Rs 12,180.1 crore, and grew by 18.2% over the corresponding quarter of the previous year. After providing Rs 2,984.1 crore for taxation, the Bank earned a net profit of , Rs 9,196.0 crore, an increase of 19.0% over the quarter ended June 30, 2021.

Total balance sheet size as of June 30, 2022 was Rs 2,109,772 crore as against Rs 1,753,941 crore as of June 30, 2021, a growth of 20.3%.

Total Deposits show. a robust growth and were at Rs 1,604,760 crore as of June 30, 2022, an increase of 19.2% over June 30, 2021. CASA deposits grew by 20.1% with savings account deposits at Rs 514,063 crore and current account deposits at Rs 220,584 crore. Time deposits were at , Rs 870,113 crore, an increase of 18.5% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 45.8% of total deposits as of June 30, 2022.

Total advances as of June 30, 2022 were Rs 1,395,0. crore, an increase of 21.6% over June 30, 2021. Gross of transfers through inter-bank participation certificates and bills rediscounted, total advances grew by around 22.5% over June 30, 2021. Retail loans grew by 21.7%, commercial and rural banking loans grew by 28.9% and corporate and other wholesale loans grew by 15.7%. Overseas advances constituted 3.5% of total advances.

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel Ill guidelines (including profits for the quarter ended June 30, 2022) was at 18.1% as on June 30, 2022 (19.1% as on June 30, 2021) as against a regulatory requirement of 11.7% which includes Capital Conservation Buffer of 2.5%, and an additional requirement of 0.2% on account of the Bank being identified as a Domestic Systemically Important Bank (D-SIB). Tier 1 CAR was at 17.1% as of June 30, 2022 cornpar. to 17.9% as of June 30, 2021. Common Equity Tier 1 Capital ratio was at 16.5% as of June 30, 2022. Risk-weighted Assets were at Rs 1,398,442 crore (as against Rs 1,153,559 crore as at June 30, 2021).

Gross non-performing assets were at 1.28% of gross advances as on June 30, 2022, (1.06% excluding NPAs in the seasonal agricultural segment) as against 1.47% as on June 30, 2021, (1.26% excluding NPAs in the seasonal agricultural segment). Net non- performing assets were at 0.35% of net advances as on June 30, 2022.

The Bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 9,630 crore as on June 30, 2022. Total provisions (comprising specific, floating, contingent and general provisions) were 170% of the gross non-performing loans as on June 30, 2022.

HDFC Bank’s core net revenue grew by 19.8% to Rs 27,181.4 crore, Net interest Income grew by 14.5% for the quarter ended June 30, 2022