HDFC Bank Q4 net up 23% to Rs 10,055 cr on loan growth, lower provisions | MorungExpress
New Delhi, April 16 (PTI) The country’s largest private sector lender, HDFC Bank, on Saturday announced a 23% increase in its standalone net profit to Rs 10,055.20 crore for the March quarter, driven by growth in loan demand across all categories and declining provisioning as bad loans were reduced.
The net profit of the bank in the corresponding period of the previous financial year stood at Rs 8,186.51 crore.
“After providing Rs 2,989.5 crore for taxation, the bank made a net profit of Rs 10,055.20 crore, an increase of 22.8% from the quarter ended March 31, 2021” , HDFC Bank said in a regulatory filing.
The bank’s total income on a stand-alone basis increased by more than 8% to Rs 41,085.78 crore in the Jan-March 2021-22 period from Rs 38,017.50 crore in the same quarter of 2020-21.
“Leads increased by 20.8%, with growth being felt across all products and segments. We continued to add new lead relationships at a steady pace of 2.4 million (24 lakh) during the quarter,” the lender said in a statement.
The Mumbai-based bank saw a 20.8% increase in its total advances from a year ago to Rs 1,368,821 crore, as of March 31, 2022.
Personal loans increased by 15.2%, commercial and rural bank loans by 30.4% and corporate and other wholesale loans by 17.4%, it said. Foreign advances accounted for 3.1 percent of total advances.
Its net income (net interest income plus other income) increased by 7.3% to Rs 26,509.80 crore for the quarter from Rs 24,714.10 crore earlier.
Net interest income (interest earned less interest spent) increased by 10.2% from a year ago to Rs 18,872.70 crore.
The bank said its non-interest income accounted for almost 29% of its net income at Rs 7,637.10 crore.
HDFC Bank added 563 branches and 7,167 employees during the quarter, and 734 branches and 21,486 employees during the year.
“This, along with other investments made during the year, will allow the bank to capitalize on the growth opportunity,” he added.
On the asset quality front, the bank said gross non-performing assets (NPA) accounted for 1.17% of gross advances as of March 31, 2022, down from 1.26% previously.
Net NPAs (or bad debts) amounted to 0.32% of net advances, compared to 0.40%.
Provisions and contingencies for the quarter ended March 2022 amounted to Rs 3,312.40 crore (comprising specific provisions for loan losses of Rs 1,778.20 crore and general and other provisions of Rs 1,534.20 crore ). Total provisions were Rs 4,693.70 crore in the prior year quarter.
For the full financial year ended 31 March 2022, the total income (autonomous) increased to Rs 157,263 crore from Rs 146,063.10 crore in the previous financial year.
Net profit increased by 18.8% to Rs 36,961.30 crore in 2021-2022.
On a consolidated basis, net profit for the last quarter of FY22 was Rs 10,443 crore, up 23.8%. For the full year, consolidated net profit climbed 19.5% to Rs 38,053 crore.
Total deposits at the end of March 2022 stood at Rs 1,559,217 crore, up 16.8%.
HDFC Bank further stated that its total capital adequacy ratio (CAR) at 18.9% was above the regulatory requirement of 11.7%.
In a separate stock filing, the bank said its board would meet on April 23 to consider a proposed dividend recommendation for 2021-22.
In a surprise announcement last week, the bank said its parent company HDFC Ltd will be merged into HDFC Bank in about 18 months and the combined balance sheet will reach Rs 17.87 lakh crore.
HDFC Ltd – the largest mortgage lender in the country – has total assets under management of Rs 5.26 lakh crore with a market capitalization of Rs 4.44 lakh crore, while HDFC Bank is the largest private sector lender by the asset size with a market capitalization of Rs 8.35 lakh crore.
Under the proposed merger agreement, HDFC Ltd shareholders will receive 42 shares of HDFC Bank (face value Re 1 each) for 25 shares of HDFC Ltd (face value Rs 2 each).
In addition, the subsidiaries/associates of HDFC Ltd will report to the bank after the merger process.
HDFC Bank said the merger is the next logical step, as the scale, growth track record and profitability of both organizations have strengthened over the past two decades.
“Regulatory convergence and market developments over time have improved the risk-reward equation,” he added.