Q1 Results: Key Highlights Of HDFC Bank, Kotak Bank And More

• The bank has securitised Rs 5,000 crore worth of mortgage assets in the June quarter, according to Srinivasan Vaidyanathan, chief financial officer.

• There is no number we have to hit as such and there are some investors who would like to hold mortgage assets in a securitised form.

• This is only a start and the bank will continue to do securitisation, loan assignment, etc., Vaidyanathan said.

Source: Q1 FY25 media call.

• The demand is looking strong for wholesale advances, according to Srinivasan Vaidyanathan, chief financial officer.

• Wholesale loan pricing is still looking benign and the risk spread available on loans is looking very thin.

• The bank is reviewing which opportunities we want to participate in, Vaidyanathan said.

Source: Q1 FY25 media call.

• The first quarter is the low deposit accretion quarter for any bank, while the fourth quarter is the highest, Srinivasan Vaidyanathan, chief financial officer said.

• Available liquidity in the system was negative by about Rs 50,000 crore.

• Retail contributes 84% of total deposits for HDFC Bank and current account constitutes 11% of total deposits.

• Have added Rs 54,000 crore current account deposits in March quarter, which was the highest in any quarter.

Source: Q1 FY25 media call.

• Rural demand indicators have started to improve, according to Srinivasan Vaidyanathan, chief financial officer, HDFC Bank.

• Manufacturing and services PMI showing improvement.

• HDFC Bank's balance sheet remains resilient, Vaidyanathan said, adding that the agricultural segment impacted NPA this quarter.

• Annualised credit cost was at 42 basis points during the quarter.

Source: Q1 FY25 media call.

• The private lender's board has given in-principle approval to initiate listing process of HDB Financial Services via an initial public offering.

• There is a mandatory requirement to list by September 2025.

• The Board has delegated the powers to a committee of directors to undertake various steps in this regard.

Source: Exchange filing.

• Mule account issue is being taken very seriously by us.

• Seeing more of that in current account space.

• Have built sophisticated models that track such transactions.

Source: Q1 FY25 media call

• Seeing signs of increase in delinquencies in microfinance in three states across North India.

• Have tightened credit and disbursement norms.

• Provisioning has been upped in credit cards, personal loans specifically in lower-ticket loans because there have been delinquencies.

• Plan to open 200 branches this fiscal; costs us around Rs 50-70 lakh on average for every branch.

Source: Q1 FY25 media call

• RBI IT embargo had an impact impact on high-yield book, said Kotak Group CFO Devang Gheewalla on reasons of squeezing NIM in Q1.

• Had liquidity in start of quarter which got deployed in quarter, he said, adding that continued challenges in low-cost deposits have put pressure on cost of funds

Source: Q1 FY25 media call

• Scope of audit finalised with RBI, said Kotak Mahindra Bank CEO Ashok Vaswani, adding that the lender has submitted some timelines to RBI about this process.

• The bank is in touch with RBI about when they think we have made enough progress that embargo can be lifted, he said.

Source: Q1 FY25 media call

• Sale of 70% Kotak General Insurance stake to Zurich led to increase in profit, said Devang Gheewalla, Group CFO, Kotak Mahindra Bank.

• Implementation of RBI's master directions on classification of investment portfolio didn't impact profit, he said.

Source: Q1 FY25 media call

• RBI order has 3 impacts — temporary disruption on digital journeys, 811 business & credit card, said Vaswani.

• Kotak Mahindra Bank has spoken to RBI and had a plan in place to recover from RBI's curbs, the CEO said.

• Resources from Accenture, Oracle and Infosys worked towards it resolving the issues, said the CEO

• Appointed GT Bharat as external auditors in consultation with RBI, he said.

Source: Q1 FY25 media call

Quarter has been about unleashing power of Kotak at group level, Ashok Vaswani, MD & CEO, Kotak Mahindra Bank.

Q1 is usually a soft quarter but we demonstrated growth YoY, said Vaswani.

Lending has been little subdued, he said.

Source: Q1 FY25 media call

Yes Bank said it is adopting cautious approach in onboarding customers on credit card and unsecured side.

It met PSL target in Q1 from both organic and inorganic side.

Yes Bank plans to open around 30-50 branches in this fiscal.

Source: Yes Bank Q1 FY25 media call

• Yes Bank expects slippages coming down in next few quarters.

• The lender said it will get 25% of balances in RIDF back this fiscal, about Rs 11,000 crore, and rest may happen over next 2-3 years.

• Yes Bank is targeting loan growth of 16-17% in current financial year, while deposit growth will be more than this.

Alert: RIDF stands for Rural Infrastructure Development Fund balances

Source: Yes Bank Q1 FY25 media call

• Net profit down 2% to Rs 16,174.75 crore versus Rs 16,510 crore (QoQ)

• NII up 2% to Rs 29,837 crore versus Rs 29,080 crore (QoQ)

• GNPA: 1.33 % vs 1.24% (QoQ)

• NNPA: 0.39% vs 0.33% (QoQ)

• Bank delivered highest quarterly profit since reconstruction, said Prashant Kumar, MD & CEO, Yes Bank.

• Maintained RoA at 0.5% for second consecutive quarter, he said.

• Bank maintained NIM at 2.4% despite Q1 seasonality, Kumar said.

• Net profit up 81% to Rs 6,249 crore vs Rs 3,452 crore. (YoY)

• Net interest income up 10% to Rs 6,843 crore vs Rs 6,234 crore. (YoY)

• Gross NPA ratio at 1.39% versus 1.38% (QoQ)

• NNPA ratio at 0.35% versus 0.34% (QoQ)

Yes Bank's net advances grew 14.7% year-on-year to Rs 2.29 lakh crore. Retail advances rose 9.4% year-on-year to Rs 1.01 lakh crore, small and medium enterprise loans were up 23.8% year-on-year to Rs 37,147 crore and corporate advances were up 13.8% year-on-year to Rs 56,328 crore.

Yes Bank Ltd. reported an 11% sequential decline in gross slippages at Rs 1,205 crore. The figure stood at Rs 1,356 crore in the previous quarter.

RBL Bank Ltd. reported a 37.6% rise in provisions at Rs 366.29 crore. The bank said it has reversed provisions of Rs 90.39 crore with respect to alternative investment funds.

RBL Bank reported an 18% year-on-year rise in total deposits during the June quarter to Rs 1.01 lakh crore, with CASA ratio at 32.6%. Meanwhile, net advances grew 19% on-year to Rs 86,704 crore. Of this retail advances grew by 31% YoY to Rs 53,737 crore.

Overall Capital Adequacy, including profit for the June quarter, was 15.56%.

Yes Bank Ltd.'s provisions for the quarter ended June fell 41.1% year-on-year to Rs 211.7 crore.

The private lender saw its operating expenses rise 10.1% on-year to Rs 2,557.7 crore during the period. In the previous quarter, there was an uptick in operating expenses due to the bank buying priority sector lending certificates along with an increase in variable compensation.

Net profit up 46.4% to Rs 502.4 crore versus Rs 343 crore (YoY).

Net interest income up 12.2% to Rs 2,243.9 crore versus Rs 2,000 crore (YoY).

Gross NPA at 1.7% versus 1.7% (QoQ).

Net NPA at 0.5% vs 0.6% (QoQ).

Net profit up 29% at Rs 372 crore versus Rs 288 crore (YoY)

NII up 20% at Rs 1,700 crore vs Rs 1,422 crore (YoY)

Gross NPA at 2.69% vs 2.65% (QoQ)

Net NPA flat at 0.74% (QoQ)

Kotak Mahindra Bank is leveraging technology to drive business growth and enhance customer experiences in the wake of the recent RBI order that barred the private lender from adding customers online, according to its managing director and chief executive offer Ashok Vaswani.

The CEO acknowledged that Kotak has made significant strides in embracing technology in recent years and has invested heavily in resources to support this initiative. However, he also recognised that there is still more work to be done.

Read the full story below.

HDFC Bank Ltd. is set to see a period of slower advances growth, as it works toward adjusting its credit-deposit ratio. In his message to shareholders in the FY24 annual report MD & CEO Sashidhar Jagdishan said that the lender's endeavour is to bring down its credit-deposit ratio to pre-merger levels.

The bank has struggled to maintain a healthy credit-deposit ratio after its merger with HDFC, which resulted in a large home loan book being added to the lender's advances portfolio.

"The bank will continue to focus on granular deposit mobilisation leveraging our inherent distribution strengths and the execution focus that we are known for," Jagdishan told shareholders.

Read the full story below.

HDFC Bank Ltd., Kotak Mahindra Bank Ltd., Yes Bank Ltd. and RBL Bank Ltd. will declare their earnings for the quarter ended June on Saturday.

HDFC Bank is expected to post a bottom-line print of Rs 15,652 crore for the three months through June, according to analysts' estimates compiled by Bloomberg.

Kotak Mahindra is expected to post a profit of Rs 3,760 crore, while Yes Bank is expected to log a bottom-line of Rs 376.4 crore.

Major companies scheduled to announce their results on Saturday are as follows: