MUMBAI: The country’s largest private sector lender HDFC Bank on Saturday reported a 22.8% increase in its standalone net profit at Rs 10,055.2 crore in Q4FY22, aided by strong interest income and improved
asset quality .
Net interest income, the difference between interest earned and interest expended, grew 10.2% to Rs 18,872.7 crore. Net interest margin was a tad below 4% against 4.2% in the same period a year ago. “After providing Rs 2,989.5 crore for taxation, the bank earned a net profit of Rs 10,055.20 crore, an increase of 22.8% over the quarter ended March 31, 2021,” the lender said in a regulatory filing. While the company reported strong profit after tax (PAT) and net interest income (NII) for the quarter, the numbers missed street estimates.
Brokerage Edelweiss had estimated a 24% rise in PAT and a 14% jump in NII, while Kotak Institutional Equities pegged a 28% growth in PAT and 15.5% in NII. The HDFC Bank share closed down nearly 2% at Rs 1,465 on Wednesday. The stock is down nearly 15% from its high of Rs 1,722 on April 4 when it announced an amalgamation of HDFC with itself.
The bank’s pre-provision operating was at Rs 16357 crore and provisions for the quarter were also lower at Rs 3312.4 crore against the year ago figure at Rs 4694 crore. Gross non-performing assets (NPA) were at 1.17% of gross advances for the quarter, down 9 basis points from the preceding quarter, while NPA were at 0.32% of net advances.
The total balance sheet size as of FY22 was Rs 20.68 lakh crore against Rs 17.47 lakh crore at the end to FY21, a growth of 18.4%. Similarly total advances grew 20.8% to Rs 13.69 lakh crore year-on-year (YoY). Total deposits rose 16.8% YoY to Rs 15.59 lakh crore.
The bank added 563 branches and 7,167 employees during Q4, taking the total number of branches at the end of the fiscal to 6,342 and cumulative staff count at over 1.41 lakh. The bank’s total capital adequacy ratio, as per Basel III norms, was 18.9% at the end of FY22 against a regulatory requirement of 11.7%. Analysts expect the stock to pull back from oversold levels.
“Hard to believe anybody would shot at current levels,” said Rajesh Palviya, technical head at Axis Securities, who expects the stock could witness a pullback on the back of the “healthy” quarterly numbers. The consolidated net profit — including subsidiaries HDB Financial Services and HDFC Securities — grew 23.8% to Rs 10,443 crore for the quarter and Rs 38,053 crore, up nearly 20% , for the full year.
Number-crunching
Q4 FY 22 (Q4 FY21)
NII: 18872.7 (17120)
NIM: 4% (4.2%)
PAT: 10055 (8186.5)
GNPA: 1.17% (1.32%)
Net NPA: 0.32% (0.4%)