HDFC Bank Q4 net profit up 23% YoY to Rs10,055 crore; stock down ~5%

18 Apr 2022 , 04:35 PM

HDFC Bank on Saturday reported a 22.8 per cent YoY rise in net profit for the March quarter at Rs10,055.20 crore after providing for Rs2,989.50 crore in taxation. The bank had reported a profit of Rs8,187 crore in the year-ago quarter.

Profit before tax (PBT) for the quarter ended March 31, 2022, at Rs13,044.7 crore grew by 20.3% over corresponding quarter of the previous year.

Net interest income (NII) was up 10.2% to Rs18,872.70 crore from Rs17,120.20 crore in the year-ago quarter. Advances were up 20.8%, with the growth coming across products and segments.

Core net interest margin was at 4.0% on total assets, and 4.2% based on interest earning assets.

“We continued to add new liability relationships at a robust pace of 2.4 million during the quarter. Liquidity coverage ratio was healthy at 112%, well above the regulatory requirement,” HDFC Bank said in the release.

The bank added 563 branches and 7,167 employees during the quarter and 734 branches and 21,486 employees during the year. This, and other investments made during the year, will position the bank to capitalise on the growth opportunity.

Operating expenses for the quarter ended March 31, 2022, were Rs10,152.8 crore, an increase of 10.6% over Rs9,181.3 crore during the corresponding quarter of the previous year.

The cost-to-income ratio for the quarter was at 38.3%.

Pre-provision Operating Profit (PPOP) was at Rs16,357.0 crore. PPOP, excluding trading income, grew by 10.2% over the quarter ended March 31, 2021.

Gross non-performing assets were at 1.17% of gross advances as on March 31, 2022, as against 1.26% as on December 31, 2021 and 1.32% as on March 31, 2021. Net non-performing assets were at 0.32% of net advances as on March 31, 2022.

The Bank held floating provisions of Rs1,451 crore and contingent provisions of Rs9,685 crore as on March 31, 2022. Total provisions (comprising specific, floating, contingent and general provisions) were 182% of the gross non-performing loans as on March 31, 2022.

HDFC Bank Ltd ended at Rs1,395.35 down by Rs69.5 or 4.74% from its previous closing of Rs1,464.85 on the BSE. The scrip opened at Rs1,440 and touched a high and low of Rs1,440 and Rs1,390.10 respectively.