HDFC Bank, the leading private sector lender, announced a robust financial performance for the fourth quarter ending March 31, 2023 (Q4FY23), with a 19.8% year-on-year increase in net profit to ₹12,047.5 crore. The bank’s net interest income (NII) surged by 23.7% to ₹23,351.8 crore in the quarter under review. HDFC Bank’s deposit and credit growth remained healthy, while provisions dropped significantly in Q4, and the asset quality remained stable.
HDFC Bank’s profit before tax for Q4FY23 stood at ₹15,935.5 crore. After providing taxation of ₹3,888.1 crore, the bank earned a net profit of ₹12,047.5 crore, representing an increase of 19.8% over the quarter that ended on March 31, 2022.
The bank’s NII, the difference between interest earned and interest expended, was at ₹23,351.8 crore in Q4FY23, up by 23.7% from ₹18,872.7 crore for the quarter that ended March 31, 2022. HDFC Bank’s core net interest margin stood at 4.1% on total assets and 4.3% based on interest-earning assets.
HDFC Bank’s net revenue surged by 21% YoY to ₹32,083.0 crore for the quarter, as against ₹26,509.8 crore for Q4 of FY22. In Q4FY23, the bank’s provisions and contingencies dropped sharply to ₹2,685.4 crore as compared to ₹3,312.4 crore in Q4 of FY22.
HDFC Bank’s Pre-provision Operating Profit (PPOP) was at ₹18,620.9 crore in Q4FY23, with PPOP, excluding net trading and mark-to-market income, growing by 14.4% over the quarter that ended March 31, 2022.
The bank’s gross non-performing assets (NPA) declined to 1.12% of gross advances in Q4FY23 as against 1.23% in Q3FY23 and 1.17% in Q4FY22. The Q4FY23 gross NPA is excluding 0.94% NPAs in the agricultural segment. The bank’s net non-performing assets were at 0.27% of net advances as of March 31, 2023.
HDFC Bank’s credit cost ratio stood at 0.67%, compared to 0.96% in Q4FY22. The bank’s total deposits rose by 20.8% YoY to ₹1,883,395 crore in Q4FY23. The bank’s total advances soared by 16.9% YoY to ₹1,600,586 crore in Q4FY23.
The bank’s total balance sheet was at ₹2,466,081 crore, up by 19.2% compared to ₹2,068,535 crore as of March 31, 2022.
HDFC Bank announced a dividend of ₹19 per equity share for the financial year FY23.