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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹32,829 Cr
verified against source
Revenue YoY
26.9%
reported change
EBITDA
Pending
latest reported figure
Source
screener in partial
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
HDFC Bank reported a strong Q1 FY24 with net profit of INR 11,952 crore (+30% YoY) and net revenues of INR 32,829 crore (+26.9% YoY). NII grew 21% to INR 23,599 crore, with NIM at 4.1%. Advances grew 20% YoY (gross of IBPC) and deposits grew 19.2% YoY, with retail deposits up 21.5%. Asset quality remained stable with GNPA at 1.17% (core 1.03%) and credit cost at 70 bps. The merger with HDFC Ltd was completed on July 1, adding a large mortgage book and 4 million customers. Management guided for 17-18% loan growth and ROA in the 1.9-2.1% range. Key risk: deposit market share may face pressure given the large incremental funding requirement from the merged entity's higher credit-deposit ratio.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects full-year loan growth in the 17-18% range, consistent with historical doubling every 4-5 years.
- Management reiterated confidence in sustaining ROA between 1.9% and 2.1% on a merged basis.
- Management indicated that the capacity built should enable retail deposit accretion of around INR 1 trillion per quarter, though Q1 was seasonally lower.
Risks flagged
- QoQ deposit growth was only 1.6% (INR 30,000 crore), significantly below system growth of ~5%, raising concerns about market share loss.
- Management is investing aggressively in branches, relying on benign credit costs to fund the investment. If credit costs revert to historical mean (90-110 bps), profitability could be pressured.
- The merged entity's credit-deposit ratio is ~109%, well above the bank's historical ~84%. Bringing it down will take 3-4 years and may constrain growth.
Key quotes
- We are not shy of not participating in certain loans. If the price is not to our liking, we don't need it.
- We never lead by pricing to get any volumes, and it is simply based on relationships.
- By the time the reversion begins, we are confident that we will lap the base effect comparison cycle.
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