Branch count
7,860
+1,482 YoY
Added 39 branches in Q1; total branches now 7,860, up 1,482 over last 12 months.
HDFCBANK
Banking
17 Jul 2023
HDFC Bank Ltd — Q1 FY24
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).
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
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.
HDFC बैंक ने पहली तिमाही में 11,952 करोड़ रुपये का शुद्ध लाभ कमाया, जो पिछले साल से 30% ज्यादा है। कुल आय 32,829 करोड़ रुपये रही। ब्याज से कमाई 21% बढ़कर 23,599 करोड़ रुपये हुई। बैंक ने कर्ज 20% और जमा 19.2% बढ़ाया। खराब कर्ज सिर्फ 1.17% रहा, जो अच्छी बात है। 1 जुलाई को HDFC लिमिटेड का विलय हुआ, जिससे बैंक को 4 करोड़ नए ग्राहक और बड़ा होम लोन पोर्टफोलियो मिला। आगे बैंक 17-18% कर्ज बढ़ाने और 1.9-2.1% मुनाफा कमाने का अनुमान लगा रहा है। लेकिन सावधानी: विलय के बाद ज्यादा कर्ज देने के लिए जमा जुटाना मुश्किल हो सकता है।
Key Numbers
Customer base
85 million
+2.4 million QoQ
Added 2.4 million new liability relationships during the quarter, reaching over 85 million customers.
Credit card issuance
1.5 million
N/A
Issued 1.5 million credit cards in Q1; total cards outstanding at 18.4 million.
Retail deposit penetration
14.5%
+50bps YoY
Time deposit penetration improved to 14.5% from 14% a year ago, indicating deeper customer engagement.
Management Guidance
Loan growth of 17-18% for FY24
Management expects full-year loan growth in the 17-18% range, consistent with historical doubling every 4-5 years.
Management guidance growthROA in 1.9-2.1% range
Management reiterated confidence in sustaining ROA between 1.9% and 2.1% on a merged basis.
Management guidance marginsRetail deposit accretion of ~INR 1 trillion per quarter
Management indicated that the capacity built should enable retail deposit accretion of around INR 1 trillion per quarter, though Q1 was seasonally lower.
Management guidance growthKey Risks
Deposit market share loss
QoQ deposit growth was only 1.6% (INR 30,000 crore), significantly below system growth of ~5%, raising concerns about market share loss.
medium · analyst_questionCredit cost reversion to mean
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.
high · management_commentaryHigh credit-deposit ratio post-merger
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.
medium · analyst_questionNotable 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.
Frequently Asked Questions
What was HDFC Bank's revenue in Q1 FY24?
HDFC Bank reported revenue of ₹32,829 Cr in Q1 FY24, representing a +26.9% change compared to the same quarter last year.
What guidance did HDFC Bank management give for FY25?
Loan growth of 17-18% for FY24: Management expects full-year loan growth in the 17-18% range, consistent with historical doubling every 4-5 years. ROA in 1.9-2.1% range: Management reiterated confidence in sustaining ROA between 1.9% and 2.1% on a merged basis. Retail deposit accretion of ~INR 1 trillion per quarter: Management indicated that the capacity built should enable retail deposit accretion of around INR 1 trillion per quarter, though Q1 was seasonally lower.
What are the key risks for HDFC Bank in FY25?
Key risks include Deposit market share loss — QoQ deposit growth was only 1.6% (INR 30,000 crore), significantly below system growth of ~5%, raising concerns about market share loss.; Credit cost reversion to mean — 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.; High credit-deposit ratio post-merger — 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..
Did HDFC Bank meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full HDFC Bank Q1 FY24 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.