HDFC Bank earned a net profit of ₹10,055.2 crore on a standalone basis for the quarter ending March 2022 (Q4FY22) period, rising by a whopping 22.8% yoy. The bank had posted a net profit of ₹8,186.51 crore in the March quarter of last year, while the bottom line stood at ₹10,342.20 crore in the third quarter of FY22.
The profitability was driven by healthy interest income, lower provisions, and improvement in asset quality. Also, other incomes recorded strong growth further lifting the performance.
The bank’s net interest income which is the difference between interest earned and interest expended, stood at ₹18,872.7 crore in the quarter under review up by 10.2% from ₹17,120.2 crore for the same quarter last year. In the December 2021 quarter, the bank had reported an interest income of ₹17,543.48 crore.
Core net interest margin was at 4% on total assets, while it was at 4.2% based on the interest earning assets for Q4FY22.
During Q4FY22, the lender recorded provisions and contingencies of ₹3,312.4 crore for the quarter against total provisions of ₹4,693.7 crore for the same quarter a year ago. In Q4FY22, the total provisions consisted of specific loan loss provisions of ₹1,788.2 crore, and general and other provisions of ₹1,534.2 crore.
In terms of asset quality, gross non-performing assets in percentage were at 1.17% compared to 1.32% in Q4FY21 and 1.26% in Q3FY22. Net NPA also improved to 0.32% in the latest quarter against 0.40% and 0.37% in Q4FY21 and Q3FY22 respectively.
Other income during Q4FY22 rose by 28.8% of net revenues to ₹7,637.1 crore as against ₹7,593.9 crore in the corresponding period of the previous year.
In the quarter, HDFC Bank’s advances were up 20.8% with growth coming across products and segments.
“We continued to add new liability relationships at a robust pace of 2.4 million during the quarter,” HDFC Bank said in its audit report. The liquidity coverage ratio is healthy at 112% and well above the regulatory requirement.
The lender’s total credit cost stood at 0.96% against 0.94% for the quarter ending December 2021, and 1.6% for the quarter ending March 2021.
On Monday, HDFC Bank shares will be in focus following their Q4FY22 and year-end financial performance. Currently, on BSE, the shares have settled at ₹1464.85 apiece down by 1.9%.