HDFC Bank Q1FY22 Results Analysis

One of the leading Private banks- HDFC bank has announced its quarterly results for Q1FY22 on Friday 17th July 2021. Here are some key highlights of the Q1FY22 Results of the HDFC Bank.

Introduction:

HDFC  Bank has announced its Quarterly Results for Q1FY22 on Friday 17th July 2021. The Quarterly Results of the HDFC annual report Bank are quite impressive on a yearly basis but have performed negatively quarter-on-quarter. Get a brief highlight of the Bank results as we move ahead.

Q1FY22 Result (Standalone): HDFC Bank

The total Income of the HDFC bank stands at Rs. 36,711 Cr. in the quarter ended 30th June 2021 down by around 3.3% QoQ from Rs. 38,017 Cr. in the quarter ended 31st March 2021. Year-on-Year, the total income of the HDFC bank has gone up by 6.7% from Rs. 34,453 Cr. in the quarter ended 30th June 2020.

• The reason behind the fall in total income on a sequential basis can be due to disruptive sessions in Q1FY22 due to the second wave of Covid-19.

• Pre-Provisioning Operating Profit of the bank is Rs. 15,137 Cr. in Q1FY22 down by 2.5% QoQ against Rs. 15,533 Cr. in the last quarter of FY21. Same has increased by around 18% YoY from Rs. 12,830 Cr. in Q1FY21.

• Moving forward to Provision and Contingencies, the HDFC bank has increased this provisioning by around 3% in Q1FY22 to Rs. 4,831 Cr. against Rs. 4,694 Cr. in Q4FY21. In the same quarter of the last financial year, the provisioning amount was around Rs. 3,891 Cr. which has now risen by around 24%.

• Profit Before Tax (PBT) of the bank has also fallen by 4.91% QoQ in Q1FY22 from Rs. 10,839 Cr. in Q4FY21 to Rs. 10,306 Cr. in Q1FY22. Year-on-Year PBT has gone up by 15.3% from Rs. 8,938 Cr. in Q1FY21.

• Further, the Net Profit of the bank has fallen by around 5.6% sequentially from Rs. 8,186.5 Cr. in Q4FY21 to Rs. 7,730 Cr. in the quarter ended 30th June 2021. While the Bank witnessed a jump of 16.1% YoY from Rs 6,659 Cr. in the quarter ended 30th June 2021.

• The Capital Adequacy Ratio of the Bank is currently at 19.1% as of 30th June 2021, the same as 18.8% in Q4FY21.

Non-Performing Assets: 

• Gross NPA has gone up to 1.47% in Q1FY22 against 1.32% and 1.36% in Q4FY21 and Q1FY21 respectively.

• Net NPA has also risen to 0.48% in Q1FY22 from 0.40% and 0.33% in Q4FY21 and Q1FY21 respectively.

Network: HDFC Share Value

• As of 30th June 2021, the Bank has 5,653 branches across 2,917 cities and towns in the country.

• The Bank has around 16,291 ATMs/Cash deposits and Withdrawals machines across these 2,917 Cities.

HDB Financial Services Update: HDFC Value Research

• As of June 30, 2021, Gross NPA based on the approach used for NBFCs stands at 7.75% in Q1FY22 against 2.86% and 3.89% in the quarter ended 30th June 2020 and 31st March 2021 respectively.

Loan Book: HDFC Valuation

• The Total Loan Book of the HDFC dividend is Rs. 57,390 Cr. in the quarter ended 30th June 2021 against Rs. 56,613 Cr. in the quarter ended 30th June 2020.

• The liquidity Coverage Ratio stands at 242%, well above the regulatory requirement.

Conclusion: HDFC Annual Results

The Q1FY22 result of HDFC bank India has caused some disappointment on the quarterly note but has reported good results on yearly basis. The Major concern which can be noted down here is the shocking rise in NPA in the subsidiary of the HDFC  analyst report- HDB Financial Services which is expected to list in the market in near time. Also, the bank itself has witnessed a rise in the NPA numbers on a quarterly as well as yearly basis. Investors looking to invest in this HDFC Bank should follow the staggered approach as there could be some pain in the banking and NBFCs sector until Q2FY22 due to the rise in NPA on account of the severe second wave of Covid-19 in the country caused in the period of April-May.

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