HDFC Bank logs 37% y-o-y growth in Q4FY24 net profit at ₹16,512 Crore

22 Apr 2024 , 01:53 PM

India’s largest private sector lender, HDFC Bank, reported a 37.1% year-on-year (YoY) increase in standalone net profit to ₹16,512 Crore in the March quarter.

Its net interest income (NII) increased by 24.5% in the quarter to ₹29,077 Crore. While announcing its quarterly results, HDFC Bank declared a dividend of ₹19.5 per share for FY24.

The lender’s core net interest margin was 3.44% for total assets and 3.63% for interest-earning assets. During the quarter, it created a floating provision of ₹10,900 Crore to serve as a countercyclical buffer, therefore strengthening its balance sheet.

“The credit environment in the economy remains healthy, and the bank’s credit performance across all segments remains strong. The bank’s GNPA of 1.24% has improved from the previous quarter,” HDFC Bank stated in a filing.

Provisions and contingencies for Q4 totaled ₹13,510 Crore, including the floating provision. The overall credit cost ratio, excluding floating provisions, stood at 0.42%, down from 0.67% in the previous quarter.

On a year-on-year basis, the bank’s total deposits increased by 26.4% to ₹23,798 billion, while CASA deposits increased by 8.7%. Gross advances increased rather quickly by 55.4% to ₹25,078 Crore at the end of the March quarter.

HDFC Bank’s domestic retail loans increased by 109%, commercial and rural banking loans by 24.6%, and corporate and other wholesale loans by 4.2%.

According to Basel-III rules, the bank’s overall capital adequacy ratio was 18.8% in Q4, compared to 19.3% in the equivalent quarter of FY23.

Tier-1 CAR was 16.8%, while the common equity Tier-1 capital ratio was 16.3% as of March 31.

Its gross NPAs were 1.24% of gross advances at March’s end, compared to 1.26% sequentially and 1.12% in Q4 of FY23. At the end of March, net NPAs accounted for 0.33% of total net loans.

At around 1.48 PM, HDFC Bank was trading 1.13% lower at ₹1,514 per piece, against the previous close of ₹1,531.30 on NSE. The counter rose to an intraday high of ₹1,557.40.

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