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Published: October 17, 2023
Updated: October 17, 2023

HDFC Bank's Stellar Q2 Performance: 50% Surge in Net Profit

HDFC Bank, one of India's leading financial institutions, has unveiled a remarkable performance in its second-quarter results for the fiscal year 2023 (Q2FY24).

Impressive Growth in Net Profit

HDFC Bank's net profit for Q2FY24 soared to Rs 15,796 crore, reflecting a remarkable increase of 50.6% compared to the previous year's figure of Rs 10,605 crore. This substantial surge in net profit is a testament to the bank's robust financial strategies.

Robust Total Income

The bank's total income during this period stood at a staggering Rs 78,406 crore, marking a substantial 69% increase year-on-year from Rs 46,181 crore. This impressive total income growth underscores the bank's ability to tap into diverse revenue streams.

Healthy Net Revenue Growth

HDFC Bank's net revenue showed robust growth, surging by 33.1% to reach Rs 38,093 crore for the quarter ending September 30, 2023, compared to Rs 28,617 crore in the same period in 2022. This growth reflects the bank's ability to generate substantial earnings.

Notable Increase in Net Interest Income (NII)

The bank reported a substantial increase in Net Interest Income (NII) for Q2FY24. NII grew by 30.3%, reaching Rs 27,385 crore, compared to Rs 21,021 crore in Q2FY23. This remarkable NII growth is a key driver of the bank's profitability.

Focus on Profit Before Tax

The Profit Before Tax (PBT) for the quarter ending September 30, 2023, reached Rs 19,790 crore. After accounting for Rs 3,814 crore in taxes, the bank's net profit stood at Rs 15,976 crore, marking a significant increase of 50.6% year-on-year.

Proactive Expense Management

Operating expenses for Q2FY24 totaled Rs 15,399 crore, representing a 37.2% increase over the previous year's figure of Rs 11,225 crore. The cost-to-income ratio for the quarter was 40.4%, indicating the bank's commitment to efficient expense management.

Robust Advances and Loan Growth

HDFC Bank reported impressive growth in gross advances, which increased by nearly Rs 1.1 trillion in Q2FY24, reaching Rs 23,54,633 crore as of September 30, 2023. This marks a substantial 57.7% year-on-year increase. Notably, domestic retail loans exhibited remarkable growth of 112.1%, while commercial and rural banking loans grew by 29.5%. Corporate and other wholesale loans also saw a healthy growth of 7.9%.

HDFC Bank's Q2FY24 results demonstrate a substantial increase in net profit, robust NII growth, and efficient expense management. The bank's focus on profitability and impressive loan growth positions it as a formidable player in the financial sector. These results reflect the bank's commitment to delivering value to its customers and stakeholders.