HDFC Bank Q4 net profit up 19.8% to Rs 12,047 cr on healthy loan growth

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HDFC Bank, the largest private sector lender in the country, reported a 19.8 per cent on year increase in its net profit to Rs 12,047 crore on the back of strong loan growth.

Net interest income (interest earned less interest expended) for the fourth quarter grew by 23.7 per cent to Rs 23,351.8 crore. Core net interest margin was at 4.1 per cent on total assets, and 4.3 per cent based on interest-earning assets, the bank said.

Other income was Rs 8731.2 crore as compared to Rs 7637.1 crore during the same period of the previous year. The bank incurred a mark-to-market loss in the fourth quarter – of Rs 37.7 crore, as compared to a gain of Rs 47.6 crore during the fourth quarter of FY22.

Provisions and contingencies for the quarter that ended March 31, 2023, were Rs 2,685.4 crore as against Rs 3,312.4 crore for the quarter that ended March 31, 2022. The total credit cost ratio was at 0.67 per cent, as compared to 0.96 per cent in the year-ago period and 0.74 per cent in the previous quarter.

Gross non-performing assets (GNPA) were at 1.12 per cent of gross advances as on March 31, 2023, as against 1.23 per cent as on December 31, 2022, and 1.17 per cent as on March 31, 2022. Net non-performing assets were at 0.27 per cent of net advances as on March 31, 2023. Net NPA was 0.33 per cent at the end of December 2022.

The bank’s total balance sheet expanded by 19.2 per cent to Rs 24.6 trillion.

Deposits grew by 20.8 per cent on year to Rs 18.8 trillion while current and savings account deposits grew by 11.3 per cent. Casa deposits were 44.4 per cent of total deposits as of March 31, 2023, compared to 44 per cent in December 2022.

Advances grew by 16.9 per cent to Rs 19.2 trillion, on the back of 20.8 per cent growth in domestic retail loans and 29.8 per cent growth of commercial and rural banking loans. The wholesale loan book of the bank saw a growth of 12.6 per cent – a sharp decline from the third quarter when it grew by 20.3 per cent.

HDFC Bank’s Capital Adequacy Ratio (CAR) was at 19.3 per cent as on March 31, 2023  as compared 18.9 per cent a year ago, as against a regulatory requirement of 11.7 per cent which includes Capital Conservation Buffer of 2.5 per cent, and an additional requirement of 0.2 per cent on account of the bank being identified as a Domestic Systemically Important Bank (D-SIB).

Tier 1 CAR was at 17.1 per cent as of March 31, 2023 compared to 17.9 per cent as of March 31, 2022. The Common Equity Tier 1 Capital ratio was 16.4 per cent as of March 31, 2023.

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