HDFC Bank Q4 net profit rises 20% to Rs12,047.5 cr
17 Apr 2023
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HDFC Bank, the country’s top private sector lender, has reported a 19.8 per cent year-on-year growth in its in net profit, at Rs12,047.5 crore, for fiscal fourth quarter ended 31 March 2023 (Q4FY23). Net interest income (NII) jumped 23.7 per cent year-on-year to Rs23,351.8 crore in the January-March 2023 quarter.
The bank reported healthy growth in deposits and credit, while provisions dropped steeply during the quarter. The bank's asset quality also continued to be stable.
HDFC Bank’s total balance sheet stood at Rs2,466,081 crore, recording a rise of 19.2 per cent compared to Rs2,068,535 crore as of 31 March 2022.
HDFC Bank's total balance sheet stood at Rs2,466,081 crore, showing a rise of 19.2 per cent against Rs2,068,535 crore as of 31 March 2022.
In Q4 of FY23, HDFC Bank reported strong growth in deposits and advances. It posted double-digit growth in bottomline and top-line front. Asset quality further improved, and provisions witnessed a sharp decline.
Profit before tax during Q4FY23 stood at Rs15,935.5 crore. However, after providing Rs3,888.1 crore for taxes, HDFC Bank’s net profit showed a 19.8 per cent year-on-year increase at Rs12,047.5 crore.
The bank posted net interest income (NII) or the difference between interest earned and interest expended, of Rs23,351.8 crore in Q4FY23, which is 23.7 per cent higher compared to Rs18,872.7 crore for the quarter ended 31 March 2022. The core net interest margin was at 4.1 per cent on total assets, and 4.3 per cent based on interest-earning assets.
HDFC Bank’s net revenue for Q4FY23 soared 21 per cent to Rs32,083 crore against Rs26,509.8 crore for Q4 of FY22.
Also, during the quarter, HDFC Bank's provisions and contingencies dropped sharply to Rs2,685.4 crore from Rs3,312.4 crore in Q4 of FY22.
Operating Profit before provisioning stood at Rs18,620.9 crore in Q4FY23, while operating profit, excluding net trading and mark-to-market income, grew 14.4 per cent over the quarter that ended 31 March 2022.
HDFC Bank's gross NPA declined to 1.12 per cent of gross advances in Q4FY23 as against 1.23 per cent in Q3FY23 and 1.17 per cent in Q4FY22. The Q4FY23 gross NPA is excluding 0.94 per cent NPAs in the agricultural segment.
Net non-performing assets formed 0.27 per cent of net advances as of 31 March 2023.
Total deposits of the bank stood at Rs1,883,395 crore in Q4FY23, up 20.8 per cent YoY. CASA deposits rose 11.3 per cent with savings account deposits accounting for Rs562,493 crore and current account deposits Rs273,496 crore. Time deposits increased by 29.6 per cent to Rs1,047,406 crore, while CASA deposits comprised 44.4 per cent of HDFC Bank’s total deposits as of 31 March 2023.
The bank’s total advances soared 16.9 per cent to Rs1,600,586 crore in Q4FY23. Year-on-Year, domestic retail loans surged 20.8 per cent, commercial and rural banking loans saw a growth of 29.8 per cent, and corporate and other wholesale loans increased by 12.6 per cent. Overseas advances constituted 2.6 per cent of total advances.
The bank's credit cost ratio for Q3FY23 was lower at 0.67 per cent against 0.96 per cent in Q4FY22.
HDFC Bank has announced a dividend of Rs19 per equity share for the financial year FY23.
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