HDFC Bank Q4 net climbs 37% to 16,512 cr.
Lender’s standalone pro t buoyed by a 24.5% increase in net interest income; Board recommends a dividend of 19.5 per equity share; bank sets aside 10,900 crore as ‹oating provisions to act as a countercyclical buŒer for making the balance sheet more res
DFC Bank Ltd. reported fourthquarter standalone net prot rose 37.1% to 16,512 crore, from 12,047 crore in the year-earlier period, aided by a 24.5% growth in net interest income at 29,080 crore.
Core net interest margin was 3.44% on total assets, and 3.63% based on interest earning assets, the bank said in a ling.
For the 12 months ended March 31, prot after tax increased 37.9% to 60,810 crore.
The Board recommend
Hed a dividend of 19.5 per equity share of 1 for the year ended March 31.
‘Credit scene benign’ “The credit environment in the economy remains benign, and the bank’s credit performance across all segments continues to remain healthy,” CFO Srinivasan Vaidyanathan said on a post-earnings conference call. “The bank’s GNPA at 1.24% has shown an improvement over the prior quarter,” Mr. Vaidyanathan added.
“The bank has considered this as an opportune stage to enhance its ¤oating provisions, which are not specic to any portfolio, but act as a countercyclical buer for making the balance sheet more resilient, and these also qualify as Tier 2 Capital within the regulatory limits,” he said, adding that the lender had set aside ¤oating provisions of 10,900 crore.
Provisions and contingencies for the quarter ended March 31 amounted to 13,510 crore (including the ¤oating provisions of 10,900 crore).
Provisions and contingencies, excluding the ¤oating provisions, declined to 2,610 crore, from 2,690 crore in the year-earlier period.
Credit cost ratio dips
The total credit cost ratio (excluding the ¤oating provisions) was at 0.42%, compared with 0.67% for the quarter ending March 31, 2023, the bank said.
Total deposits increased 26.4% to 23,79,800 crore as of March 31, 2024, and gross advances increased 55.4% to 25,07,800 crore.
Gross non-performing assets were at 1.24% of gross advances as on March 31, 2024, as against 1.26% as on December 31, 2023, and 1.12% as on March 31, 2023. Net nonperforming assets were at 0.33% of net advances as on March 31, 2024.
Consolidated prot after tax for the quarter rose 30.9% to 17,620 crore.
The bank’s consolidated prot after tax for the year ended March 31 rose 39.3% to 64,060 crore.