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Tuesday, May 17, 2022

HDFC Bank Q4 net up 22.8% on better asset quality, higher interest income

The bank’s net interest income (NII) — the difference between interest earned and interest expended — increased 10.2 per cent to Rs 18,872.7 crore in Q4FY22 as against Rs 17,120.2 crore, with credit growth of nearly 21 per cent and 16.8 per cent rise in deposits on-year.

By: ENS Economic Bureau | Mumbai |
April 17, 2022 4:01:45 am
Banking and Finance, HDFC Bank, HDFC Bank profit, Business news, Indian express business news, Indian express, Indian express news, Current Affairs“Core net interest margin was at 4 per cent on total assets, and 4.2 per cent based on interest-earning assets,” the nation’s largest private lender said.

HDFC Bank on Saturday posted a net profit of Rs 10,055.2 crore on a standalone basis for the quarter ended March 2022 (Q4FY22), up 22.8 per cent against Rs 8,186.51 crore in the year-ago period.

Net interest income (NII), the difference between interest earned and interest expended, rose 10.2 per cent to Rs 18,872.7 crore in Q4 as against Rs 17,120.2 crore a year ago, with credit growth of nearly 21 per cent and 16.8 per cent rise in deposits on-year.

“Core net interest margin was at 4 per cent on total assets, and 4.2 per cent based on interest-earning assets,” the bank said.

Advances rose 20.8 per cent to Rs 13.69 lakh crore in Q4FY22. Retail loans grew 15.2 per cent, commercial & rural banking loans by 30.4 per cent, and corporate & other wholesale loans by 17.4 per cent Asset quality improved with non-performing assets (NPAs) at 1.17 per cent of advances as against 1.32 per cent a year ago.

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“We continued to add new liability relationships at a robust pace of 2.4 million during the quarter,” the lender said. It recorded a 16.8 per cent growth in deposits at Rs 15.59 lakh crore as of March 2022, with CASA deposits rising 22 per cent and time deposits increasing 12.3 per cent.

Provisions and contingencies for the quarter ended March 31, 2022 were Rs 3,312.4 crore (consisting of specific loan loss provisions of Rs 1,778.2 crore and general and other provisions of Rs 1,534.2 crore) as against total provisions of Rs 4,693.7 crore for the same quarter a year ago. Total provisions for the current quarter included contingent provisions of approximately Rs 1,000 crore.

The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 9,685 crore as of March 2022. Total provisions (comprising specific, floating, contingent and general provisions) were 182 per cent of the gross non-performing loans. Net revenues (net interest income plus other income) in Q4 grew 7.3 per cent to Rs 26,509.8 crore against Rs 24,714.1 crore a year ago.

For the full fiscal FY22, the bank posted a profit of Rs 36,961.3 crore, a growth of 18.8 per cent over the previous year, and net interest income at Rs 72,009.6 crore, up 11 per cent over a year ago. The bank’s shares fell 1.90 per cent on the BSE to Rs 1,464.85 Thursday.

Meanwhile, as per a PTI report, HDFC Bank said it will raise up to Rs 50,000 crore in the next one year by issuing bonds. Further, its board has approved to re-appoint Renu Karnad as non-executive director on the board for five years.

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