A net profit of Rs 16,372 crore for the Q4 has been reported by the HDFC Bank. This is an impressive 33.5% increase in the same from same period last year. The net profit at last year’s Q4 stood at Rs 12,259 crore.
HDFC’s Q4 Net Profit Increases by 33.5%
The market estimates were Rs 16,427 crore which is very close to the actual net profit.
As compared to the last year quarter’s Rs 22,990 crore, there has been a 23.9% increase in the net interest income (NII) and the same stands at Rs 28,470 crore. The estimated NII was Rs 29,554 crore.
The gross non-performing assets (NPA) went up from 1.23% last year to 1.26% this year. Notably, the net NPA decreased from 0.33% last year to 0.31% this year.
HDFC Bank’s Improved Asset Quality
CFO of HDFC Bank, Srinivasan Vaidyanathan said that there has been a significant increase in the asset quality. While announcing the results in a press conference, he said that “Historically, we have seen that our asset quality has improved, and the current credit environment seems to be benign. The credit conditions seem to be quite good”.
Up by 50%, the lender’s provisions rose to Rs 4,216 crore. Total advances of the bank jumped to Rs 24.69 lakh crore, which is 62.4 % increase.
Speaking of the loans, domestic retail loans saw 111% increase, commercial and rural loans increased by 31.4% whereas the corporate and wholesale loans increased by 11.2 %.
The chief financial officer added that due to the increase in the risk weight assets on unsecured and other loans, the bank had a 97 basis points (bps) impact on the capital adequacy ratio (CAR).
As compared to last year Q4’s total deposits of the bank of Rs 22.29 lakh crore, there has been a 27.7% increase in the same quarter this year, taking the total deposits for the quarter to Rs 28.47 lakh crore.
With savings account deposits at Rs 5.79 lakh crore and current account deposits at Rs 2.58 lakh crore, the current as well as savings accounts deposit increased by 9.5%.
