HDFC Bank in the fourth quarter up 22.8% net thanks to better asset quality and higher interest income
HDFC Bank on Saturday reported net profit of Rs 10,055.2 crore on a stand-alone basis for the quarter ended March 2022 (Q4FY22), up 22.8% from Rs 8,186.51 crore a year ago. year.
Net interest income (NII), the difference between interest earned and interest spent, rose 10.2% to Rs 18,872.7 crore in the fourth quarter from Rs 17,120.2 crore a year ago. a year, with credit growth of nearly 21% and a 16.8% increase in deposits year-on-year.
“Basic net interest margin was 4% on total assets and 4.2% on an interest-earning assets basis,” the bank said.
Advances increased by 20.8% to Rs 13.69 lakh crore in Q4FY22. Personal loans increased by 15.2%, commercial and rural bank loans by 30.4% and corporate and other wholesale loans by 17.4% Asset quality improved with assets not performers (NPA) at 1.17% of advances against 1.32% a year ago.
“We continued to add new accountability relationships at a steady pace of 2.4 million during the quarter,” the lender said. It recorded a growth of 16.8% in deposits to Rs 15.59 lakh crore in March 2022, with CASA deposits increasing by 22% and term deposits increasing by 12.3%.
Provisions and contingencies for the quarter ended 31 March 2022 amounted to Rs 3,312.4 crore (comprised of specific loan loss provisions of Rs 1,778.2 crore and general and other provisions of Rs 1,534, 2 crore rupees) against total provisions of 4,693.7 crore rupees for the same quarter of the year. from. 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) accounted for 182% of gross non-performing loans . Net income (net interest income plus other income) in the fourth quarter increased by 7.3% to Rs 26,509.8 crore from Rs 24,714.1 crore a year ago.
For the full FY22, the bank recorded a profit of Rs 36,961.3 crore, a growth of 18.8% over the previous year, and net interest income of Rs 72 009.6 crore rupees, up 11% from the previous year. The bank’s shares fell 1.90% on BSE to Rs 1,464.85 on Thursday.
Meanwhile, according to a report by PTI, HDFC Bank said it will raise up to Rs 50,000 crore over the next year by issuing bonds. In addition, its board approved Renu Karnad’s reappointment as non-executive director of the board for five years.