HDFC Bank reported on Saturday a 22.8 per cent year-on-year increase in net profit for the Jan-March quarter to Rs 10,055.2 crore, compared to Rs 8186 crore the same period of the previous year. The rise is mainly due to reduction in provisions by almost Rs 1300 crore.
Provision for the fourth quarter of the previous financial year was at Rs 3312 crore, compared to Rs 4693 crore in the Jan-March period of 2020-21. Total provisions consisted of specific loan loss provisions of Rs 1,778.2 crore and general and other provisions of Rs 1,534.2 crore.
“Total provisions for the current quarter included contingent provisions of approximately Rs 1,000 crore,” said the bank, which is the country’s largest private sector lender. The total credit cost ratio was at 0.96 per cent, as compared to 0.94 per cent for the quarter ending December 31, 2021 and 1.64 per cent for the quarter ending March 31, 2021.
The net interest income of the bank grew by 10.2 per cent to Rs 18,872.7 crore on the back of 20.8% growth in advances. The bank said the loan growth came from across products and segments. Retail advances grew by 15.2 per cent, commercial and rural banking loan products grew by 30.4% while wholesale loans registered a growth of 17.4 per cent.
Retail loans constitute 39 per cent of the bank’s total, down from 47 per cent last year. Personal loans are 10 per cent of the total loan book.
The bank’s core net interest margin was 4 per cent on total assets and 4.2 per cent on interest earnings assets. “We continue to add new liability relationships at a robust pace of 2.4 million during the quarter,” the bank said.
Other income growth was muted at Rs 7637 crore for the reporting period; excluding trading income, non-interest income growth was 10.6 per cent.
HDFC Bank reported a loss from sale of investments of Rs 40.3 crore during the Jan-March period– mainly due to hardening of bond yields, as compared to Rs 655.1 crore gain during the same period of previous year.
The bank reported 18.4 per cent growth in its balance sheet to Rs 20.68 trillion as on March 31, 2022.
Deposit growth was 16.8 per cent on year to Rs 15.59 trillion, while current and savings account (Casa) deposit growth was 22 per cent. Casa deposits were 48 per cent of the total deposits, up from 46 per cent of March 2021.
Gross non-performing assets were at 1.17 per cent of gross advances as on March 31, 2022, as against 1.26 per cent as on December 31, 2021 and 1.32 per cent as on March 31, 2021. Net nonperforming assets were at 0.32 per cent of net advances as on March 31, 2022.
“The Bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 9,685 crore as on March 31, 2022. Total provisions (comprising specific, floating, contingent and general provisions) were 182 per cent of the gross non-performing loans as on March 31, 2022,” the bank said.
The Capital Adequacy Ratio (CAR) was at 18.9 per cent as on March 31, 2022 as compared to 18.8 per cent a year ago. Common Equity Tier 1 Capital ratio was at 16.7 per cent as of March 31, 2022.
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