HomeBUSINESSHDFC Bank Q1 results: 10 key highlights from the quarterly earnings

HDFC Bank Q1 results: 10 key highlights from the quarterly earnings


On Monday, HDFC Bank shares will be in focus following its earnings announcements. This week, on Friday, HDFC Bank shares closed at 1363.85 apiece up by 12.55 or 0.93% on BSE.

Here are 10 key highlights from the Q1FY23 earnings:

Interest income:

HDFC Bank posted a net interest income (NII) of 19,481.4 crore in Q1FY23 up by 14.5% from 17,009 crore in the same period last year, driven by advances and deposits that recorded growth of 22.5% and 19.2% respectively. Also, the total balance sheet which witnessed a growth of 20.3% supported the performance.

In Q1FY23, the core net interest margin stood at 4% on total assets, and 4.2% based on interest-earning assets.

The lender continued to add new liability relationships at a robust pace of 2.6 million in the quarter.

Other Income:

During the quarter, the four components in the other income were – fees and commissions of 5,360.4 crore up from 3,885.4 crore in Q1FY22; while foreign exchange and derivatives revenue stood at 1,259.3 crore up from 1,198.7 crore of Q1FY22; loss on sale/revaluation of investments of 1,311.7 crore higher from 601 crore in Q1FY22; and miscellaneous income including recoveries and dividend stood at 1,080.2 crore up from 603.5 crore of Q1FY22.

Other income excluding trading Mark to Market losses increased by 35.4% year-on-year.

Net income:

HDFC Bank registered a profit before tax (PBT) of 12,180.1 crore in Q1FY23 rising by 18.2% over the corresponding quarter of the previous year. The PBT comes after taking into consideration trading and Mark to Market losses of 1,311.7 crore in the quarter.

After deducting taxation of 2,984.1 crore, HDFC Bank garnered a net profit of 9,196 crore in Q1FY23 increasing by 19% from the same period last year.


Provisions and contingencies came in at 3,187.7 crore in Q1FY23 against 4,830.8 crore in the same quarter a year ago.

As of June 30, 2022, the bank had held provisions of 1,451 crore and contingent provisions stood at 9,630 crore. Total provisions which comprise specific, floating, contingent, and general provisions – came in at 170% of the gross non-performing loans in the quarter under review.

Pre-provision operating profit (PPOP) stood at 15,367.8 crore. PPOP excluding trading and Mark to Market losses rose by 14.7% year-on-year.

Asset quality:

As of June 30, 2022, gross non-performing assets were at 1.28% of gross advances (1.06% excluding NPAs in the seasonal agricultural segment) compared to 1.47% of Q1FY22 (1.26% excluding NPAs in the seasonal agricultural segment. In the March 2022 quarter, the gross NPA was at 1.17%.

In value terms, gross NPA at 18,033.67 crore in Q1FY23 against 16,140.96 crore in Q4FY22 and 17,098.51 crore in Q1FY22.

Net non-performing assets stood at 0.35% versus 0.32% in Q4FY22 and 0.48% of Q1FY22.

The total credit cost ratio was at 0.91% compared to 1.67% in the June quarter of last year.


The bank posted robust growth in total deposits to 1,604,760 crore in Q1FY23 increasing by 19.2% yoy. CASA deposits climbed 20.1% with savings account deposits at 5,14,063 crore and current account deposits at 2,20,584 crore. Further, in Q1, time deposits came in at 8,70,113 crore up by 18.5% yoy – resulting in CASA deposits comprising 45.8% of total deposits.


In Q1FY23, HDFC Bank recorded total advances of 1,395,068 crore increasing by 21.6% yoy. Gross of transfers through inter-bank participation certificates and bills rediscounted, total advances rose by around 22.5% compared to last year same period.

During the quarter, retail loans increased 21.7%, commercial and rural banking loans soared 28.9%, and corporate and other wholesale loans surged 15.7%. Overseas advances constituted 3.5% of total advances.

Capital Adequacy:

HDFC Bank’s total capital adequacy ratio (CAR) as per Basel III guidelines was at 18.1% as of June 30, 2022, compared to 19.1% of the corresponding period last year. This is higher than the regulatory requirement of 11.7% which includes a Capital Conservation Buffer of 2.5%, and an additional requirement of 0.2% on account of the Bank being identified as a Domestic Systematically Important Bank (D-SIB).

Tier 1 CAR stood at 17.1% in Q1FY23 compared to 17.9% in Q1FY22. Meanwhile, the Common Equity Tier 1 Capital ratio is at 16.5% in Q1FY23. Risk-weighted assets stood at 1,398,442 crore versus 1,153,559 crore of June 2021 quarter.

New Additions:

The bank added 36 branches and 10,932 employees during the quarter. Over the last twelve months, the lender added 725 branches and 29,038 employees.


The bank’s distribution network stood at 6,378 branches and 18,620 ATMs/Cash deposit and withdrawal machines (CDMs) across 3,203 cities/towns in Q1FY23 as against 5,653 branches and 16,291 ATMs/CDMs across 2,917 cities/towns of June 2021 quarter.

As of June 30, 2022, the bank’s total employees count is 152,511 compared to 123,473 headcounts of Q1 last year.

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