5 Takeaways from HDFC Bank's Q1 Results

The quarterly earnings season is underway with IT companies being the first ones to report their earnings.

TCS share price is falling after it reported mixed numbers for Q1. Same is the case for HCL Tech.

When the largest company from the sector (TCS) reports mixed numbers, it affects the sentiment for all stocks from the sector.

Case in point is Wipro. Wipro share price is falling ever since the results but there are other reasons too which are dragging IT stocks down.

Today, India's largest private sector lender HDFC Bank reported its quarterly results for the quarter ended June 2022.

Investors were widely tracking the results of HDFC Bank as it will set the stage for other private banking companies.

In the March 2022 quarter, HDFC Bank had reported a net profit growth of 22.8% while total income grew by 8%.

What did it report this quarter? How was the performance on asset quality front?

Here are five key takeaways from HDFC Bank's Q1 results.

• HDFC Bank's standalone net profit rose 19% year-on-year (YoY) to Rs 92 bn for the quarter ended June 2022. This compared with a net profit of Rs 77.3 bn in the year ago quarter.
• Total revenue grew by 13% to Rs 415.6 bn in June 2022 as against Rs 367.7 bn in June 2021 quarter. Sequentially though, revenue growth was marginal.
• HDFC Bank's net interest income (NII) rose 14.5% YoY to Rs 194.8 bn from Rs 170.1 bn in the same quarter a year ago.
• The private lender made provisions worth Rs 31.9 bn for the June 2022 quarter. Provisions are down 34% from the year-ago quarter.
• Gross non-performing assets (NPA) were at 1.28% of gross advances as on 30 June 2022 as against 1.47% as on 30 June 2021.
  
  Net NPA were at 0.35% of net advances as on 30 June 2022.

How HDFC Bank has performed recently

Ahead of its results, HDFC Bank share price ended the day 1% higher at Rs 1,363 on Friday.

HDFC Bank has a 52-week high quote of Rs 1,724 touched on 18 October last year while it has a 52-week low quote of Rs 1,271 touched on 17 June 2022.

Over the year gone by, HDFC Bank shares are down 10%.

On a YTD basis, HDFC Bank shares have shed 8%.

At the current price, HDFC Bank trades at a PE multiple of 19.9 times and a price to book value multiple of 3 times.

HDFC Bank share price is falling lately owing to the merger news and FII selling.

In the most recent quarter, mutual funds increased their stake by 1.75% to take their total holdings to 18.03%. HDFC Bank is a mutual fund favourite stock.

Meanwhile, FIIs have continued their selling spree for the past five quarters.

To know more, check out HDFC Bank's latest shareholding pattern.

About HDFC Bank

HDFC Bank is one of India's largest private sector banks. It was established in Mumbai in August 1994. Over the years, it has built a strong brand reputation and customer loyalty.

It has a network of 6,342 branches and 18,130 ATMs in 3,188 cities/towns.

HDFC Bank offers a diverse range of financial products and banking services to customers through a growing branch and ATM network as well as digital channels such as net banking, phone banking, and mobile banking.

It also offers a wide gamut of commercial and transactional banking services to organisations of all sizes.

To know more about the company, you can have a look at its factsheet and its quarterly results.

You can also compare HDFC Bank with its peers.

HDFC Bank vs ICICI Bank

HDFC Bank vs SBI

HDFC Banks vs Axis Bank

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