HDFC Bank Q4 Results: Net Profit Rises 37% To Rs 16,512 Cr; Rs 19.5 Dividend Declared

The financial results of HDFC Bank for the quarter and year ending March 31, 2024, have been released. In the January-March 2024 quarter, the bank's net profit climbed 37% YoY to Rs 16,512 crore, up from Rs 12,048 Cr in the corresponding quarter of the previous year. For the fiscal year that ends on March 31, 2024, the Board of Directors recommends paying a dividend of Rs 19.5 per share subject to the approval of shareholders.

The bank said its net interest income (NII) jumped 24% YoY from Rs 29,080 Cr in Q4FY24 compared to Rs 23,350 Cr in Q4FY23. The bank's net revenue reached Rs 47,240 Cr in the quarter under review which was Rs 32,080 Cr in the year-ago quarter, representing a growth of 47% YoY. HDFC Bank said its other income (non-interest revenue) for the quarter ended 31st March 2024 totalled Rs 18,170 Cr compared to Rs 8,730 Cr in the quarter ended 31st March 2023.

The bank's operating expenses increased by 33% YoY to Rs 17,970 Cr in Q4FY23 from Rs 13,460 Cr in Q4FY23. For the quarter, the cost-to-income ratio was at 38.0%. HDFC Bank said, its provisions and contingencies for the quarter ended March 31, 2024 were Rs 13,510 Cr.

All segments of the bank's credit performance are still doing well. Compared to the previous quarter, the Bank's GNPA, which stands at 1.24%, has gone up. HDFC Bank said its gross non-performing assets were at 1.24% of gross advances as of March 31, 2024, as against 1.26% as of December 31, 2023, and 1.12% as of March 31, 2023. As of March 31, 2024, net non-performing assets accounted for 0.33% of net advances.

"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 2 Capital within the regulatory limits. Therefore, the bank has made floating provisions of Rs 109.0 billion during the quarter," said HDFC Bank in a statement.

The total credit cost ratio was 0.42%, as compared to 0.67% for the quarter ending March 31, 2023.

Total balance sheet size as of March 31, 2024 was Rs 36,176 billion in Q4FY24 as against Rs 24,661 billion in Q4FY23. As of March 31, 2024, total deposits were Rs 23,798 billion, up 26.4% from the year-ago quarter. With savings account deposits at Rs 5,987 billion and current account deposits at Rs 3,100 billion, CASA deposits climbed by 8.7%. As of March 31, 2024, time deposits were at Rs 14,710 billion, up 40.4% from the same quarter the year before. As a consequence, CASA deposits made up 38.2% of total deposits.

As of March 31, 2024, gross advances stood at Rs 25,078 billion, a 55.4% rise from Q4FY23. There was a 108.9% growth in domestic retail loans, a 24.6% growth in commercial and rural banking loans, and a 4.2% growth in corporate and other wholesale loans. As of March 31, 2024, the bank's total Capital Adequacy Ratio (CAR) was 18.8%, compared to the statutory limit of 11.7%, based on Basel III standards. As of March 31, 2023, it was 19.3%. As of March 31, 2024, the Common Equity Tier 1 Capital ratio was at 16.3% and the Tier 1 CAR was at 16.8%. The value of risk-weighted assets was Rs 24,680 billion.

The distribution network of the bank has left 8,738 branches and 20,938 ATMs spread over 4,065 cities and towns as of March 31, 2024, compared to 7,821 branches and 19,727 ATMs spread over 3,811 cities and towns as of March 31, 2023. Furthermore, it has 15,182 business correspondents, the majority of whom work in Common Service Centres (CSC). As of March 31, 2024, there were 2,13,527 employees, compared to 1,73,222 in the year-ago quarter.