HDFC Bank Q4 Results: The bank announced that its board of directors recommended a dividend of ₹19.5 per equity share of Re 1 for the year ended March 31, 2024.
HDFC Bank Q4 Results: In its January-March fiscal 2023–24 quarter results (Q4FY24), HDFC Bank reported a standalone net profit of ₹16,512 crore, down from ₹16,373 crore in the December quarter that preceded it. Since HDFC Bank and its parent company Housing Development Finance Corporation (HDFC) merged in July, it is difficult to compare how it performed year over year.
The largest private lender in India maintained a steady asset quality, as seen by its gross non-performing assets (NPA) ratio, which stood at 1.24 percent at the end of March, down from 1.26 percent three months prior. In a same vein, net NPA slightly climbed from 0.31 percent to 0.33 percent in the preceding quarter.
Net NPA was ₹8,091.7 crore, while gross NPA was ₹31,173.3 crore. With transaction gains of ₹7,340 crore from the stake sale in subsidiary HDFC Credila Financial Services during the quarter, the bank’s net revenue increased to ₹47,240 crore.
HDFC Bank’s core net interest income -the difference between interest earned and paid- grew to ₹29,080 crore for the reporting quarter, while the other income grew to ₹18,170 crore. The lender has reported its core net interest margin (NIM) of 3.44 per cent on total assets. The bank announced that its board of directors recommended a dividend of ₹19.5 per equity share of Re 1 for the year ended March 31, 2024.
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While its lending margins remained steady, HDFC Bank increased its provisions against possible bad loans. The combined company’s profitability were negatively impacted by HDFC’s lower yielding loan book and higher borrowing costs. Analysts on D-Street predicted that the institution will reduce loan growth in favor of deposit growth until it brought important ratios back to levels seen prior to the merger.
The bank stated that its provisions and contingencies for the quarter totaled ₹13,500 crore, of which ₹10,900 crore were floating provisions. The private lender’s total profit for FY24 was ₹64,060 crore. HDFC Bank shares closed 2.46 percent higher at ₹1,531.30 a share on the BSE on Friday.
