HDFC Bank Q4: Net profit rises 20% YoY to Rs 12,047.45 crore; bank declares dividend of Rs 19/share

HDFC Bank, India's largest private sector lender, on April 15 reported a 19.8 per cent year-on-year rise in its standalone net profit at Rs 12,047.45 crore for the quarter ended March 2023 (Q4FY23). The Sashidhar Jagdishan-led lender had posted a profit of Rs 10,055.18 crore in the year-ago period. Its total income for the quarter grew 31 per cent YoY to Rs 53,850.54 crore against Rs 41,085.78 crore reported in the corresponding quarter of the previous fiscal. Besides, the bank's net revenue grew by 21 per cent to Rs 32,083.0 crore for the quarter ended March 31, 2023, against Rs 26,509.8 crore for the quarter ended March 31, 2022. 

The bank's net profit; however, was slightly below Zee Business analysts' estimates of Rs 12,300 crore. 

The lender also declared a dividend of Rs 19 per share. The record date for determining the eligibility of members entitled to receive dividends on equity shares is Tuesday, May 16, 2023, the bank said in its earnings release.

HDFC Bank's net interest income or NII (interest earned less interest expended) for the quarter ended March 31, 2023, grew by 23.7 per cent to Rs  23,351.8 crore against 18,872.7 crore registered in Q4FY22. The core net interest margin was at 4.1 per cent on total assets, and 4.3 per cent based on interest-earning assets, as per the press release.

Further, its operating expenses for the quarter ended March 31, 2023, stood at Rs 13,462.1 crore, up 32.6 per cent against Rs 10,152.8 crore in the corresponding quarter of the previous fiscal. The cost-to-income ratio for the quarter came in at 42.0 per cent. 

Pre-provision Operating Profit (PPOP) was at Rs 18,620.9 crore. PPOP, excluding net trading and mark-to-market income, grew by 14.4 per cent over the quarter ended March 31, 2022. Provisions and contingencies for the quarter ended March 31, 2023, stood at Rs  2,685.4 crore as against Rs 3,312.4 crore for the quarter ended March 31, 2022. 

Asset Quality

Gross non-performing assets were at 1.12 per cent of gross advances as of March 31, 2023 (0.94 per cent excluding NPAs in the agricultural segment), as against 1.23 per cent as of December 31, 2022 (1.00 per cent excluding NPAs in the agricultural segment), and 1.17 per cent as of March 31, 2022 (1.01 per cent excluding NPAs in the agricultural segment). Net non-performing assets were at 0.27 per cent of net advances as of March 31, 2023, against 0.32 per cent in the year-ago period.

Balance sheet

HDFC Bank, in its press release, said that its total deposits stood at Rs 1,883,395 crore as of March 31, 2023, up 20.8 per cent over March 31, 2022. It further informed that its CASA deposits grew by 11.3 per cent with savings account deposits at Rs 562,493 crore and current account deposits at Rs  273,496 crore. Time deposits were at Rs 1,047,406 crore, an increase of 29.6 per cent over the corresponding quarter of the previous year, resulting in CASA deposits comprising 44.4 per cent of total deposits as of March 31, 2023. 

CASA stands for current account and savings account.

Meanwhile, the bank's total Capital Adequacy Ratio (CAR) as per Basel Ill guidelines was at 19.3 per cent as on March 31, 2023 (18.9 per cent as on March 31, 2022) as against a regulatory requirement of 11.7 per cent.