HDFC Bank Q4 net rose 23 per cent to Rs 10,055 crore on credit growth and lower provisions.
New Delhi, April 16
HDFC Bank, the country’s largest private sector lender, jumped 23 per cent to Rs. 10,055.20 crore, while allocations declined due to increased demand for loans among categories and reduction of arrears.
The bank had a net profit of Rs 8,186.51 crore during the same period last fiscal.
“After paying Rs 2,989.5 crore for taxes, the bank had a net profit of Rs 10,055.20 crore, up 22.8 per cent for the quarter ended March 31, 2021,” HDFC Bank said in a regulatory filing.
2020-21 in the same quarter to Rs. From Rs 38,017.50 crore, the bank’s total income grew by 8% on a standalone basis during January-March 2021-22 to Rs. 41,085.78 crores.
“Advances grew by 20.8 per cent on the back of growth in products and sectors. We continued to add new liabilities at a strong pace of 2.4 million (24 lakhs) during the quarter, ”the lender said in a statement.
The Mumbai-based bank has grown its total advances by 20.8 per cent as on March 31, 2022.
Retail loans grew by 15.2 per cent, commercial and rural banking loans by 30.4 per cent and corporate and other wholesale loans by 17.4 per cent. Overseas advances accounted for 3.1 per cent of total advances.
Its net income (including net interest income and other income) rose 7.3 per cent to Rs. 26,509.80 crore, up from Rs. 24,714.10 crores.
Net interest income (interest minus interest) rose 10.2 per cent to Rs 18,872.70 crore in the year-ago period.
About 29 per cent of the bank’s non-interest income stood 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 and other investments made during the year will enable the bank to seize the growth opportunity,” it added.
In terms of asset quality, gross non-performing assets (NPAs) stood at 1.17 per cent of gross advances as on March 31, 2022, up from 1.26 per cent earlier, the bank said.
Net NPAs (or bad loans) range from 0.40% to 0.32% of net advances.
Allocations and contingencies for the quarter ended March 2022 were Rs. 3,312.40 crore (specific debt loss of Rs. 1,778.20 crore and general and other provisions of Rs. 1,534.20 crore). Total allocation was Rs 4,693.70 crore in the same quarter a year ago.
For the full year ended March 31, 2022, total revenue (standalone) increased to Rs 157,263 crore from Rs 146,063.10 crore in the previous financial year.
Net profit rose 18.8 per cent to Rs 36,961.30 crore in 2021-22.
On a consolidated basis, FY22 net profit rose 23.8 per cent to Rs 10,443 crore in the last quarter. For the full year, consolidated net profit rose 19.5 per cent to Rs 38,053 crore.
Total deposits grew by 16.8 per cent to Rs 1,559,217 crore at the end of March 2022.
HDFC Bank has stated that it needs to regulate its total capital adequacy ratio (CAR) at 18.9 per cent, which is more than 11.7 per cent.
In a separate stock exchange filing, the bank said its board of directors will meet on April 23 to consider a proposal for a dividend recommendation for 2021-22.
In a shocking announcement last week, the bank said that its parent company HDFC Limited would be merged with HDFC Bank in about 18 months and added Rs. 17.87 lakh crore, the bank said.
HDFC Limited, the largest mortgage lender in the country – Rs. 4.44 lakh crore with a market capitalization of Rs. It has total assets under management of Rs 5.26 lakh crore, while HDFC Bank has assets of Rs. Largest private sector lender with a market capitalization of Rs 8.35 lakh crore. .
Under the proposed merger agreement, HDFC Limited’s shareholders will receive 42 shares of HDFC Limited’s (Rs. 2 per face value) and HDFC Bank (Rs. 2 per face value).
Also, the subsidiaries / associates of HDFC Limited will come under the Bank after the merger process.
HDFC Bank said the merger was the logical next step as the two companies’ scale, growth track record and profitability have strengthened over the past two decades.
“Regulatory convergence and market developments over time have improved the risk-reward equation,” it added.