HDFC Bank on Saturday reported a 19% year-on-year increase in its standalone net profit to Rs 9,196 crore in the quarter ending June (Q1), after providing Rs 2,984 crore for Taxation.

During the same period last year, the net profit of the country’s largest private bank stood at Rs 7,729.64 crore. On a sequential basis, however, HDFC Bank’s net profit declined by Rs 10,055.18 crore in January-March.

The bank’s pre-provision operating profit was Rs 15,367.8 crore in the first quarter of FY23.

For the quarter ending June, the bank’s net interest income, the difference between interest earned and interest spent, increased by 14.5% to Rs 19,481.4 crore.

The increase in net interest income in the first quarter of FY23 was driven by growth of 22.5% year-on-year in advances compared to growth in deposits of 19.2%. HDFC Bank’s total balance sheet increased by 20.3% for the period under review, the lender said.

As of June 30, the total balance sheet size stood at Rs 21,09,772 crore.

Total deposits stood at Rs 1,604,760 crore as of June 30, showing a growth of 19.2% year on year.

Current account savings deposits increased by 20.1% with savings account deposits amounting to Rs 5,14,063 crore for the quarter under review. Deposits in current accounts stood at Rs 220,584 crore, the bank said.

CASA deposits represented 45.8% of total deposits as of June 30.

HDFC Bank’s total lending stood at Rs 13.95,068 crore as of June 30, registering an annual growth of 21.6%. Total advances gross of transfers by means of interbank participation certificates and rediscounted bills increased by 22.5% compared to the same period of the previous year.

In the loan portfolio, retail loans were up 21.7% year on year, while commercial and rural bank loans were up 28.9% year on year. Corporate and other wholesale loans rose 15.7%, while overseas advances accounted for 3.5% of total advances, the bank said.

Retail loans now make up 39% of HDFC Bank’s loan portfolio, the press release said.

For the reporting period, the bank’s core net income increased by 19.8% year on year to Rs 27,181.4 crore.

The total net income for the April to June quarter was Rs 25,869.6 crore.

ASSET QUALITY

As of June 30, HDFC Bank’s gross non-performing asset ratio was 1.28%, down from 1.47% a year ago. On a sequential basis, however, the gross NPA ratio increased from 1.17% a quarter ago.

The net NPA ratio was 0.35% as of June 30 versus 0.48% a year ago.

HDFC Bank held floating provisions worth Rs 1,451 crore and contingent provisions worth Rs 9,630 crore as of June 30. Total provisions represented 170% of gross non-performing loans as of June 30, the bank said.

As of June 30, HDFC Bank’s Basel III capital ratio was 18.1% compared to 19.1% a year ago. The regulatory requirement is 11.7%, the bank said.