As other income rose and bad loans remained in check, HDFC Bank Ltd. has reported a steady growth in profits.
The lender reported a net profit of Rs 6,927.7 crore for the previous quarter and this quarter has reported a net profit of Rs 8,186 crore which is up by 18.17% year-on-year.
The country’s largest private sector lender’s net interest income, or core income, rose 12.6% from a year ago to Rs 17,120 crore while other income rose 26% over a year ago to Rs 7,594 crore.
A net profit of Rs 8,436 crore and an NII of Rs 16,409 crore for the fourth quarter have been estimated by analysts polled by Bloomberg.
At the end of the financial year, the bank’s net interest margin stood at 4.2%.
Any dividend for the financial year ended March 31 has not been declared by the HDFC Bank as the RBI in order to conserve capital had asked banks to defer any dividend payments.
Asset Quality
As compared to 1.38% reported in the October-December quarter, the bank’s gross non-performing asset ratio stood at 1.32%. The net NPA ratio stood unchanged at 0.4% at the end of the financial year.
According to its statement, floating provisions worth Rs 1,451 crore and contingency provisions worth Rs 5,861 crore are held by private held.
According to the disclosures, one-time restructuring schemes for loans worth Rs 6,508.37 crore, which included retail loans worth Rs 5,456 crore have been approved by the bank.
In order to help borrowers impacted by the Covid-19 pandemic, RBI announced one-time restructuring scheme in August 2020. Provisions worth Rs 650.83 crore against these restructured accounts are held by the bank.
Advances & Deposits
Total advances rose 14% from a year ago to Rs 11.32 lakh crore. With wholesale loans now form 53% of the bank’s total domestic book HDFC Bank’s domestic retail loans reported a 6.7% year-on-year rise, while the wholesale lending portfolio grew 21.7%.
With the CASA ratio at 46.1% as of March 31, the bank’s current account savings accounts deposits rose 27% year-on-year. Deposits grew 16.3% year-on-year to Rs 13.35 lakh crore and Term deposits rose 8.5% over last year to Rs 7.19 lakh crore.
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