The private lender reported 18.2% rise in net profit to Rs 8,186.51 crore in Q4 FY21 compared with Rs 6,927.69 crore in Q4 FY20.
Total income of the bank rose 5.8% year-on-year (YoY) to Rs 38,017.50 crore during the quarter. Net interest income for the quarter ended 31 March 2021 grew by 12.6% to Rs 17,120.20 crore from Rs 15,204.10 crore for the quarter ended 31 March 2020, driven by advances growth of 14%, and a core net interest margin of 4.2%.
The bank's continued focus on deposits helped in maintenance of a liquidity coverage ratio at 138%, well above the regulatory requirement.
Other income stood at Rs 7,593.90 crore in Q4 FY21, up by 25.9% from Rs 6,032.60 crore in Q4 FY20.
Operating expenses for the fourth quarter were Rs 9,181.3 crore, an increase of 10.9% over Rs 8,277.8 crore during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter ended 31 March 2021 was at 37.2% as against 39% for the corresponding quarter ended 31 March 2020.
Pre-provision Operating Profit (PPOP) increased by 19.9% to Rs 15,532.8 crore in Q4 March 2021 over Q4 March 2020.
Profit before tax (PBT) in Q4 FY21 stood at Rs 10,839.1 crore, up by 18.1% as compared to the corresponding quarter of the previous year.
On the asset quality side, gross non-performing assets (NPAs) stood at Rs 15,086 crore as on 31 March 2021 as against Rs 8,825.56 crore as on 31 December 2020 and Rs 12,649.97 crore as on 31 March 2020.
Gross non-performing assets were at 1.32% of gross advances as on 31 March 2021, as against 1.38% (proforma approach) as on 31 December 2020 and 1.26% as on 31 March 2020.
Net non-performing assets were at 0.40% of gross advances as on 31 March 2021, as against 0.40% (proforma approach) as on 31 December 2020 and 0.36% as on 31 March 2020.
Provisions and contingencies for the quarter ended March 31, 2021 were Rs 4,693.7 crore (including a build of approximately Rs 1,300 crore in contingent provisions) as against Rs 3,784.5 crore for the quarter ended 31 March 2020.
The bank continues to hold provisions as on 31 March 2021 against the potential impact of COVID-19 based on the information available at this point in time and the same are in excess of the RBI prescribed norms. The bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 5,861 crore as on 31 March 2021. Total provisions (comprising specific, floating, contingent and general provisions) were 153% of the gross non-performing loans as on 31 March 2021.
Total deposits as of 31 March 2021 were Rs 13,35,060 crore, an increase of 16.3% over 31 March 2020. CASA deposits grew by 27% with savings account deposits at Rs 403,500 crore and current account deposits at Rs 212,182 crore.
Total advances as of 31 March 2021 were Rs 1,132,837 crore, an increase of 14% over 31 March 2020. As per regulatory [Basel 2] segment classification, domestic retail loans grew by 6.7% and domestic wholesale loans grew by 21.7%. The domestic loan mix as per Basel 2 classification between retail:wholesale was 47:53.
The bank's net profit increased by 18.5% to Rs 31,116.5 crore on a 5.8% rise in total income to Rs 146,063.10 crore in the year ended 31 March 2021 as compared to the year ended 31 March 2020.
"Given that the current second wave has significantly increased the number of COVID-19 cases in India and uncertainty remains, the board of directors of the bank, at its meeting held on 17 April 2021, has considered it prudent to currently not propose dividend for the financial year ended 31 March 2021," the private lender said in a statement.
Separately, the bank informed that the board of directors of the bank approved issuance 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 twelve months through private placement mode.
As of March 31, 2021, HDFC Bank's distribution network was at 5,608 branches and 16,087 ATMs / cash deposit & withdrawal machines (CDMs) across 2,902 cities / towns.
The HDFC Bank scrip fell 3.26% to Rs 1381.95 on the BSE.
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