HDFC Bank Announces Dividend, Records 20% Rise in Q4 2023 PAT

India's leading private sector lender - HDFC Bank today announced 19.8 per cent growth year-on-year in net profit to the tune of Rs 12,047.5 crores for the fourth quarter ending as on March 31, 2023. The bank's net interest income (NII) for Q4 2023 surged by 23.7 per cent to touch Rs 23,351.8 crores.

HDFC Bank has announced a dividend of Rs 19 per equity share for the financial year 2023.

The bank has shown healthy growth in credit and deposits. On the other hand, the provisions have slipped steeply in Q4 2023, while the bank's asset quality continues to be stable.

The bank's PBT (profit before tax) was recorded at Rs 15,935.50 crore. The bank has managed to earn a net profit of Rs 12,047.50 crore after providing taxation of Rs 3,888.1 crore, a jump of 19.8 per cent over the quarter ending on March 31, 2023.

Deposits surged up to 20.8% on year at Rs 18.8 lakh crore, and loans up by 16.9% at Rs 16 lakh crore. The HDFC bank has bought loans worth Rs 9.360 crore from HDFC. The retail deposits were up at Rs 107 lakh crore, a growth of 23.5% in Q4 FY2023.

The cost to net revenue inched up to 42% against 40% in the quarter-ago period and 38% in the year-ago period. The overall rise in operating expenditure came to 32.6% compared to a 21% growth in net revenue.

Subsidiaries Health

Among its subsidiaries, the broking arm witnessed a dip in its March quarter (Q4 2023) net profit at Rs 193.8 crore from Rs 235.6 crore, while HDB Financial Services' net profit rose 27.7 per cent to Rs 545.5 crore.

HDFC Bank said it is in the process of seeking remaining approvals and permissions for the merger with HDFC after the sanction received from the National Company Law Tribunal on March 17. The HDFC Bank script had closed with gains of 0.51 per cent at Rs 1,693.30 a piece on the BSE on Friday against a marginal uptick in the benchmark.

In the earnings report, which was released by the HDFC Bank earlier this month, its CASA ratio - or the ratio of current and savings accounts in total deposits was seen at 44% as of March 31, 2023, as compared with the last year's 48.2 per cent. Usually, a lower CASA ratio means a higher cost of funds.

Deposits surged up to 20.8% on year at Rs 18.8 lakh crore, and loans up by 16.9% at Rs 16 lakh crore. The HDFC bank has bought loans worth Rs 9.360 crore from HDFC. The retail deposits were up at Rs 107 lakh crore, a growth of 23.5% in Q4 FY2023.

Net non-performing assets were at 0.27% of net advances for Q4 2023. In terms of asset quality, HDFC's gross non-performing assets (NPA) declined to 1.12 per cent of gross advances in Q4 2023 as against 1.23 per cent in Q3 2023 and 1.17 per cent in Q4 fiscal 2022. The Q4FY23 gross NPA excludes 0.94 per cent NPAs in the agricultural segment.

HDFC bank's credit cost ratio was at 0.67 per cent, as compared to 0.96 per cent in Q4 2022.

The total advances of HDFC Bank soared by 16.9 per cent year on year (YoY) to Rs 1,600,586 crore in the fourth quarter of fiscal 2023. Year-on-Year, domestic retail loans surged by 20.8 per cent, commercial and rural banking loans saw a growth of 29.8 per cent, and corporate and other wholesale loans grew by 12.6 per cent. Overseas advances constituted 2.6 per cent of total advances.

The total balance sheet stood at Rs 2,466,081 crore, registering a rise of 19.2 per cent compared to Rs 2,068,535 crore as of March 31, 2022.

As of April 13, the bank has rewarded its investors with a return of 21.5% in the last year.