IDFC First, HDFC and ICICI Bank Q4 FY23 Results

Banks and financial companies are the backbones of any economy, providing the necessary funds for businesses and individuals to grow and prosper. As such, they have a significant impact on the stock market index and recent events have demonstrated just how true this is.

Over the past few weeks, the Bank Nifty index has seen a surge, with much of this growth being driven by the banking and financial sectors. The stocks of banks and financial companies have been performing very strongly, with investors flocking to them in droves. In the last month, Bank Nifty has outperformed the Nifty 50, gaining about 5.79% while Nifty 50 gained only 3.64%.

So, why is this happening? There are a few factors at play here. For one, the banking and NBFC sectors have been performing well in terms of profitability and growth. Banks and NBFCs have been reporting healthy earnings, with many of them beating analysts’ expectations. This has led to a surge in investor confidence, as investors look to capitalize on the growth potential of these companies.

Now let’s look at banks that are better placed among ICICI Bank, HDFC Bank & IDFC First Bank with their recent Q4FY23 results. IDFC First Banks’s revenue grew by 41% on a YoY basis, while its PAT jumped by 132% on a YoY basis. The net interest margins of the bank stood at 6.41%, delivering a growth of 30% in its net interest income. However, gross NPA stood at around 2% while NPA stood at 1%.

HDFC Bank’s revenue grew by 34% on a YoY basis, while its PAT gained by 21% on a YoY basis. The net interest margins of the bank stood at 4.10%, delivering growth of 23.70% in its net interest income. However, gross NPA stood at around 1.12% while NPA stood at 0.27%. HDFC Bank has the highest capital adequacy ratio of 19.30% and even the lowest gross NPA among the three.

ICICI Bank’s revenue grew by 38% on a YoY basis, while its PAT grew by 27% on a YoY basis. The net interest margins of the bank stood at 4.90%, which is the highest amongst the three, and the net interest income of the company grew by 40.20%. However, gross NPA stood at around 2.81% which is again the highest amongst the three and NPA stood at 0.48%.

Looking at the various metrics for the banks shows that all three are decently placed while ICICI Bank has a higher gross NPA.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations.