HDFC Bank fell 1.90% to Rs 1464.85, reacting to the bank's Q4 March 2022 results.
The private lender's net profit rose 22.83% to Rs 10,055.18 crore on 8.07% increase in total income to Rs 41,085.78 crore in Q4 March 2022 over Q4 March 2021. The bank's profit before tax (PBT) rose 20.35% year-on-year to Rs 13,044.66 crore in Q4 March 2022.The bank's provisions and contingencies (excluding tax provisions) fell 29.43% to Rs 3,312.35 crore in Q4 March 2022 over Q4 March 2021.
The bank's gross non-performing assets (NPAs) stood at Rs 16,140.96 crore as on 31 March 2021 as against Rs 15,086 crore as on 31 December 2021 and Rs 16,013.55 crore as on 31 March 2020.
The ratio of gross NPAs to gross advances stood at 1.17% as on 31 March 2021 as against 1.32% as on 31 December 2021 and 1.26% as on 31 March 2020.
The ratio of net NPAs to net advances stood at 0.32% as on 31 March 2021 as against 0.40% as on 31 December 2021 and 0.37% as on 31 March 2020.
Net interest income (interest earned less interest expended) in Q4 March 2022 grew by 10.2% to Rs 18,872.70 crore from Rs 17,120.20 crore in Q4 March 2021. Core net interest margin was at 4% on total assets, and 4.2% based on interest earning assets. The bank continued to add new liability relationships at a pace of 2.4 million during the quarter. Liquidity coverage ratio was at 112%, well above the regulatory requirement.
Pre-provision Operating Profit (PPOP) was at Rs 16,357 crore. PPOP, excluding trading income, grew by 10.2% over Q4 March 2021. The total credit cost ratio was at 0.96%, as compared to 0.94% in Q3 December 2021 and 1.64% in Q4 March 2021.
HDFC Bank's net profit rose 18.78% to Rs 36,961.33 crore on 7.67% increase in total income to Rs 157,263.01 crore in the year ended March 2022 over the year ended March 2021.
Total deposits as of 31 March 2022 were Rs 1,559,217 crore, an increase of 16.8% over 31 March 2021. CASA deposits grew by 22% with savings account deposits at Rs 511,739 crore and current account deposits at Rs 239,311 crore. Time deposits were at Rs 808,168 crore, an increase of 12.3% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 48.2% of total deposits as of 31 March 2022.
Total advances as of 31 March 2022 were 1,368,821 crore, an increase of 20.8% over 31 March 2021. Retail loans grew by 15.2%, commercial and rural banking loans grew by 30.4% and corporate and other wholesale loans grew by 17.4%. Overseas advances constituted 3.1% of total advances.
The board of HDFC Bank approved issuing 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. The proposal is subject to the approval of the shareholders of the bank and any other regulatory approvals as may be applicable.
Meanwhile, the bank's board approved the re-appointment of Renu Karnad as non-executive director (nominee of Housing Development Finance Corporation) on the board of the bank, for a period of five years with effect from 3 September 2022.
HDFC Securities (HSL) is amongst the leading retail broking firms in India. As on 31 March 2022, the bank held 96% stake in HSL. For the quarter ended 31 March 2022, HSL's total income grew by 16% to Rs 509.7 crore, as against Rs 440.7 crore in Q4 March 2021. Profit after tax for the quarter fell 3.64% to Rs 235.6 crore, as against Rs 244.5 crore in Q4 March 2021. As on 31 March 2022, HSL had 216 branches across 147 cities / towns in the country.
HDB Financial Services (HDBFSL) is a non-deposit taking non-banking finance company ('NBFC') offering wide range of loans and asset finance products to individuals, emerging businesses and micro enterprises. As on 31 March 2022, the bank held 95% stake in HDBFSL.
In Q4 March 2022, HDBFSL's net revenue was at Rs 2,141.4 crore as against Rs 1,985.3 crore in Q4 March 2021, a growth of 7.9%. Profit after tax for the quarter ended 31 March 2022 was Rs 427.1 crore, down 16.55% compared with Rs 511.8 crore for the quarter ended 31 March 2021.
HDBFSL's total loan book was Rs 61,326 crore as on March 31, 2022. Stage 3 loans were at 4.99% of gross loans. As on 31 March 2022, total CAR was at 20.2% with Tier-I CAR at 15.2% and Liquidity coverage ratio at 102%. As on 31 March 2022, HDBFSL had 1,374 branches across 989 cities / towns.
HDFC Bank is private sector lender. As of 31 March 2022, its distribution network was at 6,342 branches and 18,130 ATMs / Cash Deposit & Withdrawal Machines (CDMs) across 3,188 cities / towns as against 5,608 branches and 16,087 ATMs I CDMs across 2,902 cities/ towns as of 31 March 2021.
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