The country's largest private sector lender HDFC Bank on Saturday reported a 19.8 percent year-on-year (YoY) jump in standalone net profit at Rs 12,047.5 crore for the fourth quarter that ended March 31, 2023.

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In the corresponding quarter last year, the bank posted a net profit of Rs 10,055.2 crore. CNBC-TV18 Poll had predicted a profit of Rs 12,152.2 crore for the quarter under review.

Revenue

The bank's net revenue grew by 21.0 percent to Rs 32,083.0 crore for the quarter that ended March 31, 2023, from Rs 26,509.8 crore for the quarter that ended March 31, 2022.

GNPA

Gross non-performing assets (GNPA) stood at 1.12 percent in the March quarter against 1.23 percent in the December quarter. Net NPA came at 0.27 percent against 0.33 percent quarter-on-quarter.

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In monetary terms, gross NPA stood at Rs 18,019 crore against Rs 18,763.9 crore quarter-on-quarter (QoQ), whereas Net NPA came at Rs 4,368.4 crore against Rs 4,368.4 crore (QoQ).

NII

Net interest income (interest earned less interest expended) for the quarter ended March 31, 2023, grew by 23.7 percent to Rs 23,351.8 crore from Rs 18,872.7 crore for the quarter ended March 31, 2022. The core net interest margin was at 4.1 percent on total assets, and 4.3 percent based on interest-earning assets.

Provisions

Provisions and contingencies for the quarter that ended March 31, 2023, were Rs 2,685.4 crore as against Rs 3,312.4 crore for the quarter that ended March 31, 2022. The total credit cost ratio was 0.67 percent, as compared to 0.96 percent for the quarter ending March 31, 2022.

Other income (non-interest revenue) at Rs 8,731.2 crore was 27.2 percent of the net revenues for the quarter ended March 31, 2023, as against Rs 7,637.1 crore in the corresponding quarter ended March 31, 2022.

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Asset Quality

Gross non-performing assets were at 1.12 percent of gross advances as on March 31, 2023 (0.94 percent excluding NPAs in the agricultural segment), as against 1.23 percent as on December 31, 2022 (1.00 percent excluding NPAs in the agricultural segment), and 1.17 percent as on March 31, 2022 (1.01 percent excluding NPAs in the agricultural segment). Net non-performing assets were at 0.27 percent of net advances as on March 31, 2023.

Operating expenses for the quarter that ended March 31, 2023, were Rs 13,462.1 crore, an increase of 32.6 percent over Rs 10,152.8 crore during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was 42.0 percent.

Pre-provision Operating Profit (PPOP) was at Rs 18,620.9 crore. PPOP, excluding net trading and mark-to-market income, grew by 14.4 percent over the quarter that ended March 31, 2022.

Total deposits showed healthy growth and were at Rs 1,883,395 crore as of March 31, 2023, an increase of 20.8 percent over March 31, 2022. CASA deposits grew by 11.3 percent with savings account deposits at Rs 562,493 crore and current account deposits at Rs 273,496 crore.

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Time deposits were at Rs 1,047,406 crore, an increase of 29.6 percent over the corresponding quarter of the previous year, resulting in CASA deposits comprising 44.4 percent of total deposits as of March 31, 2023.

Total advances as of March 31, 2023, were Rs 1,600,586 crore, an increase of 16.9 percent over March 31, 2022. Domestic retail loans grew by 20.8 percent, commercial and rural banking loans grew by 29.8 percent and corporate and other wholesale loans grew by 12.6 percent.

Digant Haria, Co-Founder of GreenEdge Wealth Services, while sharing his views on bank's deposit growth, said, "Deposits is the number one priority. So if you look at HDFC Bank’s deposit growth, it's much higher in the system, but it is coming at a cost of paying much higher deposit rates. So for the first time in 12-13 years HDFC Bank is giving higher deposit rates across maturities, across ticket sizes, which means HDFC is very well aware that because of the merger, they have to focus on deposits."

Dividend

The Board of Directors recommended a dividend of Rs 19.0 per equity share of Rs 1 for the year ended March 31, 2023, as against Rs 15.5 per equity share of Rs 1 for the previous year.

First Published:Apr 15, 2023 1:54 PM IST