HFDC Bank Q4 net profit up 23.82% at Rs10,443cr due to surge in profits in corporate banking

16 Apr 2022 , 05:25 PM

HFDC Bank reported 7.46% yoy growth in total consolidated revenues in the Mar-22 quarter at Rs43,960cr. Revenues of HDFC Bank were up 1.37% on a sequential basis.

In terms of top line revenues, HDFC Bank saw sharp growth in retail banking and wholesale banking revenues. However, amidst volatile bond market scenario, the treasury revenues fell and revenues from other banking operations was almost flat.

Net interest income (NII) for Q4 grew 10.2% yoy to Rs18,873cr. Overall advances were up 20.8% across loan segments.

For the Mar-22 quarter, the operating profits were up 4.13% at Rs17,720cr. Core net interest margins (NIM) of HDFC Bank stood at 4% on total assets and at 4.2% on interest earning assets.

The liquidity coverage ratio at 112% was comfortable and above the statutory requirements. The cost to income ratio of HDFC Bank stood at 38.3% in Q4.

Operating margin or OPM contracted from a level of 41.60% in Mar-21 to 40.31% in the Mar-22 quarter. OPMs were also lower by 28 bps on a sequential basis.

Profit after tax (PAT) for the Mar-22 quarter was up by 23.82% at Rs10,443cr. This was on the back of stable NIMs and lower provisions. For Q4, the provisions and contingencies stood at Rs3,312cr compared to Rs4,694cr in the year ago period. Credit cost ratio was up 2 bps at 0.96% in the quarter amidst rising yields.

Consequently, the PAT margins improved from 20.62% to 23.76% in the same period. The CASA deposits comprised 48.2% of the total deposits as of Mar-22 quarter.

Financial highlights for Mar-22 compared yoy and sequentially

	HDFC Bank Ltd
Rs in Crore	Mar-22	Mar-21	YOY	Dec-21	QOQ
Total Income	₹ 43,960	₹ 40,909	7.46%	₹ 43,365	1.37%
Operating Profit	₹ 17,720	₹ 17,018	4.13%	₹ 18,034	-1.74%
Net Profit	₹ 10,443	₹ 8,434	23.82%	₹ 10,591	-1.40%
Diluted EPS	₹ 18.70	₹ 15.20		₹ 19.00
Operating Margins	40.31%	41.60%		41.59%
Net Margins	23.76%	20.62%		24.42%
Gross NPA Ratio	1.17%	1.32%		1.26%
Net NPA Ratio	0.32%	0.40%		0.37%
ROA (Not Annualized)	0.52%	0.50%		0.56%
Capital Adequacy	18.90%	18.80%		19.50%