MUMBAI: The second largest lender HDFC Bank on Saturday reported a muted 2.11 percent growth in consolidated net income to Rs 17,622.38 crore for the March quarter as against Rs 17,257.87 crore in the preceding December quarter.
On a standalone basis, the largest private sector lender reported a net profit of Rs 16,511.85 crore compared to Rs 16,372.54 crore in the December quarter.
The numbers are not comparable on an annualised basis as in July 2023, the bank had merged with its home loan-focused parent HDFC into itself. The core net interest income, which the interest earned on its loans, grew to Rs 29,080 crore for the reporting quarter, while other income grew to Rs 18,170 crore, the bank said in a statement.
The city headquartered bank booked the core net interest margin, which is the income in percentage terms earned from loans after paying interest for its funds at 3.44 percent as against 3.60 percent in the previous quarter.
The gross non-performing assets or the bad loans ratio came in at an industry leading 1.24 percent up from 1.22 in the September period while the net bad loan ratio got printed in at an industry leading 0.33 percent which was flat sequentially. This had the provisions at Rs13512 crore expectation.
The banks advances rose a tepid 1.6 percent to a tad over over Rs 25 trillion while deposits jumped a full 7.5 percent to Rs 23.8 trillion. Of the total loans retail advances led with a whopping 108.9 percent on an annualised basis. Gross advances increased 55.4 percent.
The bank is by far the second largest in the system after the nationalised SBI, with a loan book of a little over Rs 25 trillion as of March 2024. The asset and balance sheet boost was announced on account of the merger with its parent which brought in around Rs 6.25 trillion of assets to its book.
The bottoming was boosted by a one-time gain of Rs 7,341.42 crore from the sale of HDFC Credila, the education loan arm of its erstwhile parent HDFC, to BPA EQT and ChrysCapital.
The bank declared a final dividend of Rs 19.5 per share for the fiscal.