HDFC Bank shares up 2.5% on robust Q4 update

HDFC Bank shares are trading 2.40% up today after India's largest private lender reported robust business in the fourth quarter of the financial year 2023-24.

HDFC Bank, in an exchange filing, says its gross advances aggregated to around ₹25,08,000 crore as of March 31, 2024, a growth of around 55.4% over ₹16,142,00 crore as of March 31, 2023, and up 1.6% over ₹24,693,00 crore as of December 31, 2023.

HDFC Bank's domestic retail loans grew by around 108.9% over March 31, 2023 and around 3.7% over Q3 FY24; commercial & rural banking loans by 24.6% over March 31, 2023 and around 4.2% (₹ 323 billion) over Q3 FY24; corporate & other wholesale loans (excluding non-individual loans of the erstwhile HDFC Ltd) grew 4.1% over March 31, 2023, and were lower by around 2.2% over Q3 FY24.

In deposits, HDFC Bank saw 26.4% growth YoY to ₹23,800,00 crore as of March 31, 2024. The deposits surged 7.5% over ₹22,140,00 as of December 31, 2023. Retail deposits grew 27.8% over March 31, 2023, and around 6.9% over December 31, 2023; wholesale deposits by 19.4% over March 31, 2023, and around 10.9% over December 31, 2023.

HDFC Bank's CASA (current account and savings account) deposits surged 8.7% YoY to around ₹9,090,00 crore as of March 31, 2024. Retail CASA grew 8.8% YoY and 6.3% on a QoQ basis. The bank’s CASA ratio was 38.2% as of March 31, 2024 vs 44.4% as of March 31, 2023 and 37.7% as of December 31, 2023.

During the fourth quarter, HDFC Bank also completed the process of stake sale in education finance unit, HDFC Credila Financial Services, to a consortium of private equity companies BPEA EQT and ChrysCapital for ₹9,552.73 crore.

Shares of HDFC opened a gap up and hit a day's high of ₹1,526.05 on the BSE. At this price, the scrip is trading down 13% from its 52-week high of ₹1,757.80 touched on July 3, 2023. Its m-cap stands at ₹11.5 lakh crore.

HDFC Bank is currently the top gainer on the NSE and the Bank Nifty Index.

Shares of HDFC Bank have given a 4.94% return in the past week; and 6.12% return in the past month. The scrip has fallen 0.60% on a six-month basis and is down 10.47% in the year-to-date period. HDFC Bank has seen a 7.86% fall in its share price in the past year.

HDFC Bank’s net interest income stood at ₹28,471 crore in Q3 FY24, up 4% QoQ and 23.9% YoY. The bank’s quarterly net profit stood at ₹16,373 crores. But, NIM remained stable sequentially at 3.6% and there was compression on a YoY basis.