HDFC Bank Q3 concall highlights-
Industry Mkt share in Advances at 11 pc, in Deposits at 10 pc
Customer base at 8.3 cr
Total branches at 7821 (opened an avg of 04 branches per day in FY 23 !!)
52 pc branches in rural and semi urban areas
Credit card Mkt share at 28 pc !!
NII - 24940 vs 20350 cr, up 23 pc
Non Interest income - 9610 vs 8380 cr, up 15 pc
Operating expenses - 14590 vs 11010 cr, up 33 pc (due massive branch expansion)
PPOP- 19960 vs 17720 cr, up 14 pc
Provisions- 2680 vs 3320 cr, down 21 pc
PAT (consol)- 12590 vs 10440 cr, up 21 pc
Total Advances at Rs 16,14,200 cr, up 17 pc
Total Deposits at 18,83,400 cr, up 21 pc (big achievement)
Cost/Income at 42 pc- despite massive branch expansion
NIMs at 4.1 pc vs 4.0 pc
RoA at 2.2 pc
Capital Adequacy at 19.3 pc, Tier-1 at 17.1 pc
Retail:Wholesale deposits at 83:17
Retail:Wholesale Loans at 47:53
10 yr Advances CAGR at 21 pc
10 yr Deposits CAGR at 20 pc
10 yr PAT CAGR at 21 pc
Asset quality-
Gross NPAs - 1.1 vs 1.2 pc
Net NPAs - 0.27 vs 0.33 pc
Bank’s POS machines currently operational at 39 lakh, up by 30 over previous FY end
Bank’s merchant App- Vypaar added 75,000 merchants per month in FY 23
Branches offering wealth management, now over 900 vs around 700 LY
Branches offering gold loan at 4182, up by 3X vs Mar 22 (bad news for gold loan companies)
Added 1.06 cr new liability customers in FY 23!!
Employee addition in FY at 31600 !!
CASA ratio stands at 44 pc
Q4 loan growth breakup -
Retail loans up 21 pc
MSME and priority sector loans grew by 29 pc
Wholesale loans grew by 12 pc
Express car loans gaining tremendous traction, now constitute 20 pc of all car loans
Slippage ratio for Q4 was 28 bps (this is too good)
Recoveries and upgrades in Q4 were 22 bps (awesome)
PCR at 76 pc. But if u add contingent, general and other provisions, this jumps to 176 pc of GNPAs (eye- popping)
HDB Fin Services (subsidiary) reported improvements across loan growth, PAT and asset quality. Its full year PAT almost doubled to 1950 cr !!!
HDFC Securities revenues and PAT de-grew slightly in Q4. Full yr PAT was 777 vs 984 cr LY
CV portfolio of the bank grew 11 pc QoQ (V Strong growth)
Benign credit cost cycle allowing the bank to go full throttle on branch expansion without worrying too much about expenses
43-44 pc loans are fixed rates loans with avg tenure of 2.5 yrs
Retail loan book : Wholesale book to grow because of aggressive branch expansion
Branch addition speed ( which is already hyper ) to continue in FY 24 as well, subject to Qtly evaluation
Full benefits of this hyper addition in branches to be visible in 2-3 yrs as new branches and new customer relation start to mature
Merger may get completed by July
My take -
Exceptional performance wrt deposit mobilisation, asset quality, slippages, provision coverage, acceleration in retail loans
No discussion on Bank’s planned all new Website / user interface was a disappointment
Performance on most operational metrics - Superb
Disc: holding, biased
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