Mumbai, April 22: HDFC Bank today met Street estimates when it posted a 23 per cent growth in net profit for the fourth quarter ended March 31. The country’s second largest private bank reported a net profit of Rs 2,326.5 crore against Rs 1,889.84 crore in the same period last year.
Analysts had expected the bank to record a growth between 23 per cent and 26 per cent for the period. Although HDFC Bank has been reporting strong numbers, the growth in net profit has been sliding since the second quarter of 2013-14 because of the economic slowdown.
The period, however, saw HDFC Bank notching up a 15 per cent growth in its core income when net interest income (interest earned minus interest expended) rose to Rs 4,952.64 crore from Rs 4,295.3 crore in the same period last year. This came on the back of a robust jump in its advances. HDFC Bank said advances as of March 31 stood at Rs 303,000 crore, an increase of 26.4 per cent over last year.
The domestic loan mix between retail and wholesale stood at 53:47. While the total retail advances stood at Rs 149,674 crore, the bank saw a surge in advances in auto loans, two-wheeler loans, personal loans and credit cards.
On the other hand, total deposits as of March 31 stood at Rs 367,337 crore, an increase of 24 per cent over last year. Savings account deposits grew 16.9 per cent to touch Rs 103,133 crore, while current account deposits saw a rise of nearly 18 per cent at Rs 61,488 crore. The proportion of low-cost CASA deposits were 44.8 per cent of total deposits as on March 31.
Analysts said one of the positive elements from the fourth quarter numbers was the decline in absolute gross non-performing assets (NPAs) by 1 per cent sequentially. Gross NPAs stood at 0.98 per cent of gross advances as on March 31 against 1.01 per cent in the preceding quarter.
Vaibhav Agrawal, vice-president (research-banking) at Angel Broking, who has a buy rating on the stock, said the absolute net NPA (post provisions) rose 3 per cent over the preceding quarter, but this was a modest increase in the context of current macro challenges.
At its meeting today, the board of directors recommended a dividend of Rs 6.85 per share as against Rs 5.5 per share for the previous year.