HDFC Bank Limited (HDB) | Q1 2024 Earnings Call Transcript Summary

HDFC Bank has reported strong growth in advances, with a year-on-year increase of 15.7% to INR16.3 lakh crores ($219bn). Retail advances grew by 20% YoY, driven by performance in home and personal loans. Meanwhile, MSMEs and public sector lending grew by 29%, while the wholesale segment grew by 11% YoY. The bank's advances gross of IBPC grew by 20.1% YoY.

HDFC Bank One, the customer experience hub, recorded over 22 million interactions from 12.5 million unique customers during the quarter. PayZapp handled transaction volume of over 13 million, while express car loan volume contributed 30% of car loan volume. The bank says it remains committed to expanding its distribution as well as its digital footprint.

The bank reported net revenues of INR32,829 crores ($4.4bn), a YoY increase of 26.9%. Net interest income was INR23,599 crores ($3.2bn), up 21% YoY, while core net interest margin came in at 4.1%. Other income was INR9,230 ($1.2bn), with fees and commission accounting for two-thirds of this figure. Operating expenses were INR14,057 crores ($1.9bn), up 33.9% YoY, reflecting investments made during the benign credit environment. The cost-to-income ratio was 42.8%.

Asset quality remained resilient, with a GNPA ratio of 1.17%, compared to 1.28% the prior year. Recoveries and upgrades were INR2,650 crores ($355m), or approximately 16 basis points. Write-offs were INR2,100 crores ($282m). Provisions were INR2,850 crores ($383m), while the provision coverage ratio was 75%. Total provisions, comprising specific, floating, contingent, and general provisions were 171% of gross non-performing loans.