HDFC Bank, following its $40 billion merger with India's largest Non-Banking Financial Company (NBFC), HDFC, has reported significant growth in its Q2FY24 report released Monday. The report includes results from subsidiaries such as HDFC Securities, HDFC AMC, HDFC Ergo GIC, HDFC Capital Advisors, and HDFC Life Insurance.
The bank recorded a year-over-year growth of 50.6%, earning a net profit of Rs 15,976 crore and a net interest income (NII) of Rs 27,385 crore, marking a 30.3% growth. This growth aligns with recent data from InvestingPro, which shows a 25.63% revenue growth for HDFC Bank. The bank's P/E ratio stands at 17.51, and the company's market cap is adjusted at 139.59B USD, according to InvestingPro Data.
Despite this growth, the bank's shares dipped by 0.5% to close at Rs 1529.50 with a market cap over Rs 11.59 lakh crore. This is consistent with InvestingPro's data, which shows a -1.14% 1 week price total return.
Among the subsidiaries, HDB Financial Services reported a net revenue of Rs 2,357 crore and a profit after tax (PAT) of Rs 602 crore. Its total loan book stood at Rs 77,857 crore. HDFC Life Insurance registered a net premium income of Rs 14,756 crore and PAT of Rs 377 crore. HDFC Ergo's net premium was Rs 2,592 crore with a net profit of Rs 236 crore.
HDFC AMC's assets under management (AUM) stood at Rs 5.25 lakh crore with a PAT of Rs 438 crore. HDFC Securities' revenue was Rs 603 crore with a PAT of Rs 214 crore. These figures show a strong revenue growth, which has been accelerating according to InvestingPro Tips.
In other news from the same day, S Vaidyanathan, CFO of HDFC Bank, confirmed that the sale of HDFC Credila is under regulatory scrutiny. The Competition Commission of India (CCI) approved a consortium led by BPEA EQT (ST:EQTAB) and ChrysCapital to acquire a 90% stake in Credila in August 2023. The Rs 9,060 crore sale's definitive documents were disclosed by HDFC Ltd on June 20, 2023.
The deal allows HDFC to nominate a non-executive nominee director on Credila's board and guarantees customary pre-emptive rights per the shareholders' agreement. This followed an RBI directive in April 2022 mandating HDFC Ltd to cut its stake in Credila to 10% over two years without enrolling new clients, prior to the merger with HDFC Bank. Deepak Parekh, Chairman of HDFC Ltd, had anticipated regulatory approval within a month.
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