HDFC Bank Q4 Net Profit Jumps 18%, Says No Dividend Amid COVID Surge

HDFC Bank reported on Saturday that its net profit for the quarter ended March 31, 2021, increased by 18.1% to Rs 8,186.51 crore. However, compared to Rs 8,758 crore in the December period, the standalone net profit fell by 6.5% (Q3FY21).

In the third quarter, Net Interest Income (NII) increased by 12.6% to Rs 17,120 crore. In the quarter ended March 31, 2020, it was Rs 15,204 crore.

Gross non-performing assets (NPAs) at HDFC Bank increased 1.32% year on year, compared to 1.26% the previous year. Net nonperforming assets (NPAs) increased to 0.40% from 0.36% the year before.

Due to the uncertainty caused by the second wave of a novel coronavirus, the lender's Board of Directors agreed not to pay a dividend in FY21.

HDFC Bank's shares closed at 1,428.45 on the BSE on Friday, down 0.12% from their previous close.

"Given that the current "second wave" has significantly increased the number of coronavirus cases in India and uncertainty remains, the Board of Directors has considered it prudent to currently not propose a dividend for the financial year ended March 31, 2021," HDFC Bank said in a filing.

At the end of the March period, the Bank's capital adequacy ratio was 18.8%, far above the regulatory threshold of 11.075%.

Provisions and contingencies were Rs 4,693 crore in the March quarter, up from Rs 3,784 crore the year before. Total deposits increased by 16% in Q4FY21 compared to the previous quarter.