HDFC Bank Q4 results: NII grows by 24%, PAT up 20% YoY, dividend of Rs 19/share declared

HDFC Bank Q4 FY23 results: India's largest lender by market capitalisation (mcap) HDFC Bank Ltd on Saturday reported that its net interest income grew by 24 per cent, while there was almost a 20 per cent year-on-year (YoY) rise in net profit for the January-March quarter of FY2023. The total income swelled 31 per cent YoY to Rs 53,851 crore. The bank's board has approved a final dividend of Rs 19 a share.

Net revenue

Its consolidated net revenue grew 21 per cent to Rs 32,083.0 crore for the March quarter of the last fiscal from Rs 26,509.8 crore in the same quarter a year ago.

Net profit

The consolidated net profit for the quarter that ended March 31 was at Rs 12,047.5 crore for the quarter that ended March 31, 2022. The Profit before tax (PBT) for the quarter that ended March 31, 2023, was at Rs 15,935.5 crore.

Last year, the bank posted a net profit of Rs 10,055.2 crore in the same quarter.  Earnings per share for the quarter that ended March 31 was at Rs 22.60 and book value per share was Rs 518.70.

Net income

Its net interest income, which is the difference between interest earned and interest expended), grew by 23.7 per cent to Rs 23,351.8 crore for the March quarter. It was Rs 18,872.7 crore for the same quarter a year ago. 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 bank statement.

Bad loans

The lender’s asset quality was largely stable. As per the bank statement, gross non-performing assets (GNPA) stood at 1.12 per cent in the January-March quarter against 1.23 per cent in the December quarter of FY23. The Net NPA came at 0.27 per cent against 0.33 per cent quarter-on-quarter FY23.

The gross NPA stood at Rs 18,019 crore against Rs 18,763.9 crore quarter-on-quarter (QoQ), whereas the Net NPA came at Rs 4,368.4 crore against Rs 4,368.4 crore (QoQ).

The net non-performing assets ratio was 0.27 per cent in the March quarter, compared to 0.33 per cent in the December quarter, and 0.32 per cent in March FY2022.

Dividend payment

Along with this, the Board of Directors recommended a dividend of Rs 19.0 per equity share of Rs 1 for the year ended March 31, 2023, as against Rs 15.5 per equity share of Rs 1 FY2022. 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.

Operating expenses

The bank's operating expenses for the March quarter were at Rs 13,462.1 crore, up by 32.6 per cent over Rs 10,152.8 crore during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was 42.0 per cent.

Whereas, the Pre-provision Operating Profit (PPOP) was up by 14 per cent at Rs 18,620.9 crore. PPOP, excluding net trading and mark-to-market income, grew by 14.4 per cent over the last quarter of FY22.

Other income

The bank has mentioned four components of other income for the January-March quarter. It includes fees and commissions of Rs 6,628.1 crore. It was Rs 5,630.3 crore a year ago. The second component is foreign exchange & derivatives revenue, which was Rs 1,010.5 crore. It was Rs 804.5 crore in the corresponding quarter of the previous year.

The net trading and mark-to-market loss stood at Rs 37.7 crore, which showed gains of Rs 47.6 crore in the corresponding quarter of the previous year. Lastly, the miscellaneous income, including recoveries and dividends, was about Rs 1,130.2 crore. It was slightly lower than last financial year's count of Rs 1,154.7 crore.

Loans and deposits

HDFC said its total deposits saw healthy growth in the March quarter and were at Rs 1,883,395 crore. It was up by almost 21 per cent as compared to the figures in the March quarter of FY2022. The total advances as of March 31 were Rs 1,600,586 crore.

“Domestic retail loans grew by 20.8 per cent, commercial and rural banking loans grew by 29.8 per cent and corporate and other wholesale loans grew by 12.6 per cent,” HDFC Bank said in the exchange filing.

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