Private sector lender, HDFC Bank has reported a 20.53 per cent growth in its net profit at Rs 21,078.14 during the financial year 2018-19 as compared to Rs 17,486.75 crore in 2017-18. The bank's Net Interest Income (NII), the difference between the total interest earned and interest expended by a bank, rose by 20.32 per cent to Rs 48,243.22 crore in FY19.
HDFC Bank has reported a 22.63 per cent rise in its net profit for the March quarter of the last fiscal on a year-on-year basis. The private lender posted a net profit of Rs 5,885.12 crore during the quarter under review, as opposed to the Rs 4799.28 crore in the corresponding quarter in the previous fiscal.
The total interest HDFC Bank earned during FY19 was Rs 98,972.05 crore, as opposed to Rs 80,241.35 crore. This amounts to an increase of 23.34 per cent, the bank said in a regulatory filing. The interest earned during the March quarter of FY 19 was 26,333.25 crore as opposed to Rs 21,321.08 crore for the same period last fiscal, translating into an increase of 23.50 per cent.
The lender's NII during the Q4 FY'19 was 13,089.49 crore. The NII for Q4 FY'18 was Rs 10,657.71 crore. The increase of 22.81 per cent in NII figures was due to average asset growth of 19.8 per cent.
The HDFC Bank also reported an increase in its provisions for bad loans during the March quarter. The provision and contingencies rose to Rs 1,889.22 crore from Rs 1,541.10 crore seen during the year-ago period.
On asset front, bank's gross non-performing assets (NPAs) were at 1.36 per cent of gross advances by March 31, 2019, as compared to 1.30 per cent on March 31, 2018. Coverage ratio as on March 31, 2019, was 71 per cent. Net non-performing assets or bad loans were at 0.30 per cent of net advances against 0.40 per cent. HDFC Bank said in its statement that it held floating provisions of Rs 1,451 crore as on March 31, 2019.
Announcing the financial results, the HDFC board recommended a dividend of Rs 15 per equity share for the year ended March 31, 2019. The issuance of dividend is subject to shareholder approval at the upcoming Annual General Meeting of the bank. The board also approved raising up to Rs 50,000 crore through a private placement of debt instruments in the next 12 months.
"The Board of Directors have approved the issue of Perpetual Debt Instruments (part of Additional Tier I capital), Tier II Capital Bonds and Long Term Bonds (financing of infrastructure and affordable housing) up to a total amount of Rs 50,000 crore in the period of next 12 months through private placement mode, subject to the approval of the shareholders at the ensuing Annual General Meeting of the Bank and any other regulatory approvals as applicable," HDFC Bank further said in the statement.
Additionally, the HDFC Bank board also decided for termination of the Global Depository Receipts (GDR) programme and delisting of 22 GDRs (representing 11 underlying equity shares of the Bank) from the Luxembourg Stock Exchange (LSE). The decision was taken due to the minimal number of GDRs outstanding and the low trading volume of GDRs.