Hdfc Bank Limited · NSE:HDFCBANK
Hdfc Bank — Investor Presentation (September 2023)
16 slides from Hdfc Bank's investor presentation, Sep 18, 2023
Slide 1: Intimation of presentation to stock exchanges
CIN: L65920MH1994PLC080618 HDFC Bank Limited, Email: shareholder.grievances@hdfcbank.com Zenith House, Website: www.hdfcbank.com Opp. Race Course Gate no. 5 & 6, Keshavrao Khadye Marg, Mahalaxmi, Mumbai- 400034 Tel.: 022 - 3976 0000 / 07 / 12 September 18, 2023 BSE Limited National Stock Exchange of
Slide 2: HDFC Bank – sell side analyst meet
HDFC Bank – sell side analyst meet Discussion on opening merged net worth and related matters September 18, 2023
Slide 3: e-HDFC Limited net worth movement
e-HDFC Limited net worth movement ₹ Bn 62 1400 (118) 40 1200 (76) (49) Accretion to e- (81) 1000 HDFC’s equity in Q1Jun’23 800 Harmonisation effect on 1,340 incoming net worth Tax effects of Interim dividend 600 harmonisation 1,199 paid out by e- 1,118 HDFC prior to effective date 400 200 0 Mar-23 Q
Slide 4: Opening merged net worth – 1st July 2023
Opening merged net worth – 1st July 2023 ₹ Bn 4000 (142) (81) 3500 1,199 3000 2500 2000 3,995 3,914 1500 2,938 1000 500 0 Opening Jul-23 e-HDFCL Share swap and 1st Jul-23 e-HDFCL interim 1st Jul-23 HDFCB 1st Jul-23 pre- elimination Merged pre- dividend Merged dividend of stake dividend BVPS: ₹ 525 B
Slide 5: IGAAP alignment and credit policy harmonisation
IGAAP alignment and credit policy harmonisation IGAAP alignment ₹ Bn. Deferred acquisition cost and fees (38) Interest spread on assigned loans (28) Fair value adjustments to bring investments to cost (43) Others (9) Total (118) Credit policy harmonisation ₹ Bn. General and contingent provisions (39
Slide 6: Asset quality
Asset quality Mar-23 Jun-23 1st Jul-23 Particulars HDFCB HDFCB HDFCB Merged Gross NPA (%) 1.1% 1.2% 1.4% Retail GNPA (%) 1.0% 0.9% 0.9% CRB GNPA (%) 1.6% 1.8% 1.8% CRB ex-Agri GNPA (%) 1.1% 1.2% 1.2% Wholesale GNPA (%) 0.5% 0.4% 0.4% e-HDFCL Individual GNPA (%) 1.0% e-HDFCL Non-Individual GNPA (%) 6
Slide 7: Key Ratios: e-HDFC Limited
Key Ratios: e-HDFC Limited Ind AS Proforma IGAAP Incoming e-HDFCL Financials day-0* FY23 FY23 Q1FY24 NIM 2.9% 2.9% 2.7% 2.0% Cost to income 10% 19% 19% Credit costs as a % of advances 0.3% 0.3% 0.3% RoA 2.4% 1.9% 1.8% *Incoming day-0 includes additional liquidity 6 Sell side analyst meet, September
Slide 8: Key Ratios: Merged HDFC Bank
Key Ratios: Merged HDFC Bank HDFCB Standalone Proforma Merged Financials FY23 Q1FY24 HDFCB Q1FY24 NIM (interest bearing assets) 4.3% 4.3% 3.9% - 4.0% NIM (total assets) 4.1% 4.1% 3.7% - 3.8% Cost to income 40% 43% ~40% Credit costs as a % of advances 0.7% 0.7% ~0.6% RoA 2.1% 2.1% 1.9% - 2.0% RoE 17.
Slide 9: Merged summarised balance sheet – 1st July 2023
Merged summarised balance sheet – 1st July 2023 HDFCB HDFCB ₹ Bn. 30-Jun-23 Merged Opening Share capital & reserves 2,938 3,914 Deposits 19,131 20,638 Borrowings 2,094 6,869 Other liabilities 854 1,125 Total 25,017 32,546 Loans and advances 16,157 22,210 Cash & equivalent 1,607 1,610 Investments 5,6
Slide 10: APPENDIX
APPENDIX 9 Sell side analyst meet, September 18, 2023
Slide 11: A decade+ history of consistently doubling in 4 years
A decade+ history of consistently doubling in 4 years Quarterly/yearly variations are appropriate to markets, positioning and risk parameters 50% 3.0 45% 2.4x 2.4x 2.4x 2.3x 2.3x 2.5 40% 2.2x 2.2x 2.1x 2.0x 2.1x 35% 2.2x 2.0x 1.9x 2.2x 2.2x 2.2x 2.1x 2.0 2.1x 2.0x 2.1x 2.1x 2.0x 30% 2.0x 2.0x 26% 27
Slide 12: Quarterly variation appropriate to markets, positioning and risk parameters
Quarterly variation appropriate to markets, positioning and risk parameters 50% 3.0 45% 2.5 40% 35% 2.0 30% 23% 25% 25% 23% 22% 22% 1.5 20% 21% 19% 18% 19% 19% 20% 17% 17% 14% 16% 1.0 15% 13% 10% 0.5 5% 0% - YoY growth - net advances YoY growth - deposits 4Y loan multiplier 4Y deposit multiplier 11
Slide 13: Growth rate and trends
Growth rate and trends Greater reach and penetration – opportunity to scale-up YoY growth % e-HDFC Limited – loan growth Mar’22 Jun’22 Sep’22 Dec’22 Mar’23 Jun’23 Individual loans 17% 19% 19% 17% 16% 13% Non-individual loans 6% 7% 0% -6% -12% -18% e-HDFCL – customer franchise 14% 16% 14% 12% 9% 6% Y
Slide 14: Consistent profitability and value accretion
Consistent profitability and value accretion 40% 2.5% 35% 2.1% 2.0% 2.0% 2.0% 2.1% 30% 2.0% 2.0% 2.0% 1.9% 1.9% 1.9% 1.9% 1.9% 25% 1.5% 20% 21% 20% 20% 18% 18% 18% 17% 17% 17% 17% 17% 16% 1.0% 15% 10% 0.5% 5% 0% 0.0% Mar'13 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Jun'23
Slide 15: Safe harbour statement
Safe harbour statement Certain statements are included in this release accounting standards, our ability to pay dividends, attacks by the United States, a United States-led which contain words or phrases, such as ‘will’, the impact of changes in banking regulations and coalition or any other country
Slide 16: THANK YOU
THANK YOU 15 Sell side analyst meet, September 18, 2023