HDFC Bank Q4 results: Key highlights from the earnings report

The country’s largest private sector bank, HDFC Bank, on April 20, reported a net profit of Rs 16,511 crore for January-March quarter of the financial year 2023-24, marking a 0.84 percent jump compared to Rs 16,373 crore last quarter. The net revenue of the lender grew to Rs 47,240 crore including transaction gains of Rs 7340 crore from the stake sale in subsidiary HDFC Credila Financial Services during the quarter.

The lender recorded a net interest income (NII) of Rs 29,007 crore, slightly lower than the market estimates of Rs 29,172 crore.

Here are the key highlights from the earnings report.

Net profit remains flat as provisions jump

The profit of the lender stood at Rs 16,511 crore for the January-March quarter of the financial year 2023-24, marking a 0.84 percent jump compared to Rs 16,373 crore clocked in the previous quarter. The net profit is almost in line with the market estimates of Rs 16,576 crore.

The bank’s year-on-year financial results are not comparable due to the merger with the parent entity HDFC Ltd during the year.

Stable NIM  

The core net interest margin (NIM) was at 3.44 percent on total assets, and 3.63 percent based on interest-earning assets. In the last quarter, the NIM was at 3.40 percent on total assets.

Mixed asset quality

The bank's gross non-performing asset (NPA) stood at 1.24 percent, down from 1.26 percent in the last quarter. On the other hand, net NPA for the quarter stood at 0.33 percent compared to 0.31 percent.

Deposit and credit growth

Total deposits of the lender stood at Rs 23.79 lakh crore during the quarter ended March 31, 2024. Of the total current and savings account (CASA) deposits of the bank, current account deposits stood at Rs 3.1 lakh crore and savings account deposits at Rs 5.97 lakh crore.

Total advances of the bank stood at Rs 25.07 lakh crore. Overseas advances constituted 1.8 percent of total advances.

Subsidiary performance

HDB Financial Services Ltd, in which the Bank holds a 94.6 percent stake, is a non-deposit-taking NBFC offering a wide range of loans and asset finance products. For the quarter ended March 31, 2024, the company reported a profit of Rs 606 crore compared to Rs 505 crore last year, registering a growth of 20.3 percent.

HDFC Ergo, in which the bank holds a 50.5 percent stake, reported a loss of Rs 103 crore against a profit of Rs 201 crore last year.

HDFC Securities Ltd (HSL), in which the bank holds a 95.1 percent stake, reported a net profit of Rs 320 crore compared to Rs 190 crore last year.