 "HDFC Bank Q4 results: Profit jumps 37% to Rs 16,512 crore, NII up 24.5% (1)")
Trading gains doubles for HDFC Bank in Q4FY24; makes Rs 1,090 crore floating provision. (Photo: Bloomberg)
Private sector lender HDFC Bank reported 37.1 per cent growth in net profit for the quarter ended 31 March 2024 to Rs 16,512 crore, as compared to Rs 12,047 crore during the same quarter of the previous year.
Net interest income (interest earned less interest expended) for the quarter grew by 24.5 per cent to Rs 29,080 crore while core net interest margin was at 3.44 per cent on total assets, and 3.63 per cent based on interest earning assets.
Operating expenses for the quarter ended March 31, 2024 included staff ex-gratia provision of Rs 1,500 crore.
Other income or non-interest income for the quarter more than doubled to Rs 18,166 crore as against Rs 8,731 crore in the corresponding quarter ended March 31, 2023. Growth in other income is mainly due to trading and mark to market gain of Rs 7,950 crore as compared to a loss of Rs 40 crore during the same period of last year.In Q4,HDFC Bank completed selling a majority of its stake in HDFC Credila, an education finance subsidiary, for Rs 9,553 crore.
“The credit environment in the economy remains benign, and the Bank’s credit performance across all segments continues to remain healthy,” the private sector lender said in a press release.
HDFC Bank’s GNPA at 1.24 per cent as compared to 1.26 per cent in the previous quarter and 1.12 per cent in the fourth quarter of the previous financial year. The bank has made floating provisions of Rs 1,090 crore during the quarter.
More From This Section
“The Bank has considered this as an opportune stage to enhance its floating provisions, which are not specific to any portfolio, but act as a countercyclical buffer for making the balance sheet more resilient, and these also qualify as Tier-II Capital within the regulatory limits,” it said.
Provisions and contingencies, excluding the floating provisions, for the quarter ended March 31, 2024 were Rs 2,610 crore as against Rs 2,690 crore for the quarter ended March 31, 2023.
“Our book across all segments are performing healthy. It is an opportune stage, when everything is benign, you think about countercyclical buffers,” said Srinivasan Vaidyanathan chief financial officer of the reason for floating provision.
Total deposits of the bank increased 26.4 per cent year on year with current and savings account deposits growing by 8.7 per cent. Casa deposits were 38.2 per cent of total deposits.In absolute terms deposits grew by Rs 1.66 trillion in Jan-March period of which retail deposits were Rs 1.29 trillion.
Gross advances increased 55.4 per cent on a year-on-year basis.In absolute terms deposits grew by Rs 1.66 trillion in Jan-March period of which retail deposits were Rs 1.29 trillion.Retail loans grew by 108.9 per cent, commercial and rural banking loans grew by 24.6 per cent and corporate and other wholesale loans (excluding non-individual loans of HDFC Ltd) grew by 4.2 per cent.
The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 18.8 per cent as on March 31, 2024 (19.3 per cent as on March 31, 2023) as against a regulatory requirement of 11.7 per cent.
