HDFC Bank posts Rs 16,511 crore Q4 profit, declares Rs 19.5 per equity dividend

The bank, which is among the first lenders to announce the numbers for the quarter, reported that the core net interest income grew to Rs 29,080 crore for the reporting quarter, while the other income grew to Rs 18,170 crore.

an HDFC Bank spokesperson strongly denied the allegations made by the Trust, its trustees, and officials, dismissing them as “baseless and malicious”. (File)

HDFC Bank, India’s largest private bank, has reported a net profit of Rs 16,511 crore for the January-March quarter (Q4) of the financial year 2023-24, marking a 0.84 per cent jump compared to Rs 16,373 crore clocked in the December quarter and a 37.1 per cent rise from Rs 12,050 crore in the same period of last year.

However, the bank’s year-on-year financial results are not comparable due to the merger with the parent entity HDFC Ltd during the year.
The board of directors has recommended a dividend of Rs 19.5 per equity share of Rs one for the year ended March 2024.
The board also cleared raising of perpetual debt Instruments (part of additional Tier I capital) and Tier II Capital Bonds up to a total amount of Rs 60,000 crore over the period of next twelve months through private placement mode.

The bank’s gross non-performing asset (NPA) stood at 1.24 per cent, down from 1.26 per cent in the last quarter. On the other hand, net NPA for the quarter stood at 0.33 per cent compared to 0.31 per cent. Retail mortgages were at Rs 7.72 lakh crore as of March 2024.
The bank’s shares closed 2.46 per cent higher at Rs 1,531.30 on the BSE on Friday.

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The net revenue of the lender grew by 47.3 per cent to Rs 47,240 crore including transaction gains of Rs 7,340 crore from the stake sale in subsidiary HDFC Credila Financial Services during the quarter. It was Rs 32,080 crore last year. Net interest income rose by 24.5 per cent to Rs 29,080 crore.

Meanwhile, the bank’s consolidated net revenue grew by 133.6 per cent to Rs 80,700 crore for the quarter ended March 2024 from Rs 34,550 crore for the quarter ended March 31, 2023. The consolidated profit after tax for the year ended March 2024 was Rs 64,060 crore, up 39.3 per cent, over the year ended March 2023.
Deposits were at Rs 23.798 lakh crore and gross advances were Rs 25.07 lakh crore.

“The credit environment in the economy remains benign, and the bank’s credit performance across all segments continues to remain healthy. The bank’s GNPA at 1.24 per cent has shown an improvement over the prior quarter,” the bank said in a statement.

The bank has considered this as an opportune stage to enhance its floating provisions, which are not specific to any portfolio, but act as a countercyclical buffer for making the balance sheet more resilient, and these also qualify as Tier 2 Capital within the regulatory limits. Therefore, the bank has made floating provisions of Rs 10,900 crore during the quarter, it said.

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Provisions and contingencies for the quarter ended March 2024 were Rs 13,510 crore (including the floating provisions).