Result Analysis: HDFC bank (CMP: Rs.1,593) Result Update: Q3FY23

HDFC Bank Ltd. is one of India’s leading private bank with banking network of 6,499 branches and 18,868 ATMs in 3,226 cities/towns. It offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments: Wholesale Banking Services, Retail Banking Services and Treasury. The services offered by the bank include Personal Accounts & Deposits, Loans, Cards, Forex, Investments and Insurance.

    Open FREE* Demat & Trading Account & ₹0 AMC for first year

    Stock Details
    Market Cap. (Cr.) 892754.88
    Face Value 1.00
    Equity (Cr.) 557.68
    52 Wk. high/low 1722 / 1272
    BSE Code 500180
    Book Value (Rs) 470.38
    Sector Banks
    Key Ratios
    ROE (%): 16.69
    EPS: 74.84
    P/BV: 3.4
    P/E: 21.39

    Result Highlights:

    • HDFC bank reported a strong 19.9% YoY and 14.1% QoQ increase in the consolidated net profit for the December quarter’ 22.

    • Net Interest Income of the bank grew by 23.3% YoY and 8.3% QoQ to Rs. 24,497 cr. While Net Interest Margin stood unchanged at 4.1% on QoQ and YoY basis.

    • Banks’s total advances grew to Rs.15.07 lakh cr. by 19.5% YoY in Q3FY23 compared to Rs. 12.60 lakh cr. in Q3FY22.

    • On yearly basis, Domestic retail loans grew by 21.4%, commercial and rural banking loans grew by 30.2% and corporate and other wholesale loans grew by 20.3%. Overseas advances constituted 2.8% of total advances.

    • Total deposits aggregated to Rs.17.34 lakh cr. as of December 31, 2022, a growth of 19.9% over Rs.14.46 cr. for the same period of FY22 and a growth of around 3.6% over Rs.16.73 cr. as of September 30, 2022.

    • CASA deposits grew by 12% YoY with savings account deposits at Rs. 535,206 cr. and current account deposits at Rs. 227,745 cr.

    • The Bank’s CASA ratio stood at 44% for Q3FY23 as compared to 47.1% in Q3FY22 and 45.4% of Q2FY23.

    • Asset quality of the bank remained unchanged on QoQ basis; Gross NPA and Net NPA ratio were at 1.23% and 0.33% respectively for the Q3FY23.

    • HDB Financial Services, subsidiary of HDFC Bank saw improvement in the asset quality. Stage-3 assets were down from 4.88% to 3.73% QoQ.

    • During the quarter ended December 31, 2022, the Bank purchased loans aggregating Rs.0.89 cr. through the direct assignment route under the home loan arrangement with Housing Development Finance Corporation Limited.

    Financial Performance: 


    Shareholding Pattern:

    Shareholding Pattern %
    Promoters & Promoter Group 20.91
    FIIs 45.07
    DIIs 22.59
    Public 9.87
    Others 1.56

             Conference Call Highlights:

    • Management will continue to focus on granular deposit growth which will be partly aided by branch addition in the near term.

    • Expecting healthy credit demand in the NBFCs, telecom, PSU and infrastructure segments to sustain.

    • Margins may witness some pressure in the near term. However, it will remain in the historical range.

    • The bank issued 1.2 mn cards during the quarter.

    • The bank added 684 branches during the quarter and 600 more are in pipeline. Gold loan processing is offered from 3938 branches.

    • On the merger’s update, bank said, The NCLT hearing is on January 27, 2023.


    HDFC Bank reported in-lined results in the December quarter with increase in NII, declining provisions and stable Asset quality. Total Deposits and advances of the bank has grown at an aggressive rate of over 19% YoY. Total Retail loans grew by 19.9% and total commercial and rural banking advances grew at the rate of 30.2% YoY. Current ratios of the bank also remained healthy for the quarter, total Capital Adequacy Ratio is at 19.4% as against the regulatory requirement of 11.7%. Management of the bank plans to double the branch counts in three years’ timeframe. Overall the bank is showing good positive outlook for the longer term. In the 9MFY23 the bank reported the EPS of Rs.60.06 and we expect FY23 to close at eEPS of Rs.80 at the current P/BV of 3.38x.



    Particulars (In Rs. Cr.) Q3FY23 Q2FY23 Q3FY22 QoQ% YoY% 9M FY23 9MFY22 FY22
    Interest earned 45,002 40,930 34,588 9.9% 30.1% 1,23,206 1,00,362 1,35,93,641
    Interest Expended 20,505 18,311 14,724 12.0% 39.3% 55,174 43,358 58,584
    Net Interest Income 24,497 22,619 19,864 8.3% 23.3% 68,032 57,004 1,35,35,057
    Operating Profit 20,180 18,722 18,034 7.8% 11.9% 55,391 51,078 68,799
    Provisions 3,244 3,765 3,816 -13.8% -15.0% 10,675 13,895 17,925
    Net Profit after tax 12,698 11,125 10,591 14.1% 19.9% 33,403 27,610 38,053
    Deposits 19.9% 17,33,204 14,45,918 15,59,217
    Advances 19.5% 15,06,809 12,60,863 13,68,821


    Segment Revenue (In Rs. Cr.) Q3FY23 Q2FY23 QoQ% Q3FY22 YoY%
    Treasury 9551 7910 20.7% 9,192 3.9%
    Retail Banking 35302 35125 0.5% 29,253 20.7%
    Wholesale Banking 25375 21266 19.3% 18,726 35.5%
    Other Banking Operations 9483 9450 0.3% 8,386 13.1%
    Unallocated 1045 403 158.9%
    Total 80755 74154 8.9% 65,556 23.2%
    Less: Inter Segment Revenue 26632 24972 6.6% 22,191 20.0%
    Total Revenue from Operations 54123 49182 10.0% 43,365 24.8%


    Ratios (%) Q3FY23 Q2FY23 Q3FY22 QoQ% YoY%
    Gross NPA 1.23 1.23 1.26 0.00% -2.38%
    Net NPA 0.33 0.33 0.37 0.00% -10.81%
    Provision Coverage Ratio 73 73 71 0.00% 2.82%
    Net Interest Margin 4.3 4.3 4.3 0.00% 0.00%
    Capital Adequacy Ratio 19.4 18 19.5 7.78% -0.51%
    CASA Ratio 44 45.4 47.1 -3.08% -6.58%


    Product Wise Advances (In Rs. Cr.) Q3FY23 Q2FY23 QoQ% Q3FY22 YoY%
    Personal Loans 1,64,641 1,54,820 6.3% 1,33,399 23.4%
    Auto 1,12,442 1,08,788 3.4% 96,426 16.6%
    Home Loans 97,593 93,050 4.9% 78,992 23.5%
    Payment Products 83,314 81,966 1.6% 73,305 13.7%
    Loan Against Property 72,436 69,313 4.5% 57,736 25.5%
    Two Wheelers 9,759 9,597 1.7% 9,288 5.1%
    Gold Loans 10,042 9,434 6.4% 8,198 22.5%
    Other Retail 56,374 53,580 5.2% 48,407 16.5%
    Total Retail Assets 6,06,602 5,80,546 4.5% 5,05,751 19.9%
    Emerging Corporates 1,70,623 1,64,558 3.7% 1,36,421 25.1%
    Business Banking 2,32,049 2,18,014 6.4% 1,73,644 33.6%
    Commercial Transportation 99,684 91,890 8.5% 74,130 34.5%
    Agriculture 70,912 70,278 0.9% 56,031 26.6%
    Total Commercial & Rural Banking 5,73,268 5,44,740 5.2% 4,40,226 30.2%
    Corporates & Other Wholesales 3,92,254 3,96,779 -1.1% 3,26,182 20.3%
    Source: Company website, EWL Research

    Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

    Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
    For analyst certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
    Disclosure Appendix
    Analyst Certification (For Reports)
    Israil Khan, Elite Wealth Limited,
    The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
    As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
    (1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
    (2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
    For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
    Research Excerpts
    This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit
    Company-Specific Disclosures
    Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting, or emailing with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail
    Options related research:
    If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at
    Other Disclosures
    All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
    Ownership and material conflicts of interest Disclosure
    Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
    Country Specific Disclosures
    India – For private circulation only, not for sale.
    Legal Entities Disclosures
    Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website:
    EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
    1. Reports
    a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
    (b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
    (c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
    2. Compensation
    (a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
    (b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
    (c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
    (d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
    (e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
    3 In respect of Public Appearances
    (a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
    (b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL