HDFC Bank Q4 findings: NII increases by 24.5% while profit soars 37% to Rs 16,512 crore

The quarter’s net interest income, or interest generated less interest spent, increased by 24.5% to Rs 29,080 crore, while the core net interest margin was 3.4% on total assets and 3.6% on interest-earning assets.

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In comparison to the same quarter last year, when it was Rs 12,047 crore, private sector lender HDFC Bank recorded a 37.1% increase in net profit for the quarter that concluded on March 31, 2024, to Rs 16,512 crore.

The quarter’s net interest income, or interest generated less interest spent, increased by 24.5% to Rs 29,080 crore, while the core net interest margin was 3.4% on total assets and 3.6% on interest-earning assets.

A Rs 1,500 crore provision for staff ex-gratia was included in operating expenditures for the quarter that ended on March 31, 2024. The quarter’s other income, or non-interest income, more than doubled to Rs 18,166 crore from Rs 8,731 crore in the comparable quarter that ended on March 31, 2023.

GNPA of HDFC Bank was 1.24 percent in the fourth quarter, down from 1.12 percent in the previous quarter and 1.26 percent in the preceding quarter.
“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.
“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 added.
“Our book across all segments are performing healthy. It is an opportune stage, when everything is benign, you think about countercyclical buffers,” mentioned Srinivasan Vaidyanathan chief financial officer.
The bank’s total deposits rose 26.4% annually, with deposits into current and savings accounts increasing by 8.7%. 38.2% of the total deposits were from Casa deposits.

Gross advancements rose by 55.4% in comparison to the previous year. Between January and March, deposits increased by Rs 1.66 trillion in total, of which Rs 1.29 trillion came from retail deposits.

The growth in loans was as follows: retail loans increased by 108.9%, commercial and rural banking loans increased by 24.6%, and corporate and other wholesale loans (excluding HDFC Ltd.’s non-individual loans) increased by 4.2%.

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