HDFC Bank Q4 Results: Net Profit Rises 23% On Stronger Loan Growth
HDFC Bank released its fourth quarter earnings on Saturday.
HDFC Bank Ltd.'s net profit rose in the fourth quarter on improved loan growth.
India’s largest private sector lender saw its net profit increase 23% over the year before to Rs 10,055.18 crore in the three months ended March, according to its exchange filing. That compares with the Rs 10,270-crore consensus estimate of analysts tracked by Bloomberg.
Its net interest income, or core income, rose 10.2% year-on-year to Rs 18,872 crore.
Other income, excluding trading income, rose 10.6% to Rs 7,637 crore.
Net interest margin for the quarter stood at 4% on total assets, and 4.2% based on interest earning assets
The private lender’s asset quality improved during the reported quarter.
Its gross non-performing asset ratio fell to 1.17%, down by 9 basis points sequentially.
Net NPA ratio also declined 5 basis points over the preceding three months to 0.37%.
Total provisions during the quarter fell 29% year-on-year to Rs 3,312.25 crore.
The bank, as on March 31, had restructured retail loans worth Rs 9781.56 crore under the Reserve Bank of India’s second Covid-19 restructuring scheme. Individual business loans worth Rs 1,512 crore and small business loans worth Rs 154 crore were also restructured under the extended scheme announced in May 2021.
Loan Growth Accelerates
HDFC Bank saw loan growth across retail, wholesale, and commercial portfolios in the quarter ended March, it said in its quarterly update ahead of the earnings.
The private lender saw its advances rise 20.9% over the year earlier to Rs 13.7 lakh crore.
Retail loans were up 15% year-on-year and 5% over the preceding three months.
Wholesale loans up 17.5% year-on-year and 11.5% sequentially.
Commercial and rural banking loans up 30.5% year-on-year and 10% quarter-on-quarter.
Its deposits grew 16.8% year-on-year to Rs 15.6 lakh crore.
CASA deposits rose 22% over the year earlier. CASA ratio stood at 48% as of March 2022 compared with 46.1% as of March 2021 and 47.1% as of December 2021.
HDB Financial Services
For the quarter ended March 31, 2022, the non-bank lender reported a profit after tax of Rs 427.1 crore compared to Rs 511.8 crore a year ago.
Stage-3 loans, or those which were overdue by more than 90 days, were at 4.99% of gross loans.
The total loan book was Rs 61,326 crore as on March 31, 2022.