How did you find the HDFC Bank quarterly results announced over the weekend?
Answer
Answer
For the Mar-22 quarter, HFDC Bank reported 7.46% higher revenues yoy at Rs.43,960 crore. However, revenues were flat on QOQ basis. The bank witnessed sharp growth in retail banking and wholesale banking revenues, but treasury revenues took a hit. Net interest income (NII), a key metrics for banks, for fourth quarter grew 10.2% yoy to Rs.18,873 crore, which is low compared to the overall advances growth of 20.8% across loan segments.
HDFC Bank Ltd
Rs in Crore
Mar-22
Mar-21
YOY
Dec-21
QOQ
Total Income
₹ 43,960
₹ 40,909
7.46%
₹ 43,365
1.37%
Operating Profit
₹ 17,720
₹ 17,018
4.13%
₹ 18,034
-1.74%
Net Profit
₹ 10,443
₹ 8,434
23.82%
₹ 10,591
-1.40%
Diluted EPS
₹ 18.70
₹ 15.20
₹ 19.00
Operating Margins
40.31%
41.60%
41.59%
Net Margins
23.76%
20.62%
24.42%
Gross NPA Ratio
1.17%
1.32%
1.26%
Net NPA Ratio
0.32%
0.40%
0.37%
ROA (Not Annualized)
0.52%
0.50%
0.56%
Capital Adequacy
18.90%
18.80%
19.50%
Let me now turn to the operating performance of HDFC Bank for Q4. Operating profits for Q4 were up 4.13% at Rs.17,720 crore supported by NIMs at 4.2% on interest earning assets. While the liquidity coverage ratio stood at 112% the cost to income ratio of HDFC Bank was 38.3% in Q4. Operating margin or OPM contracted from 41.60% in Mar-21 quarter to 40.31% in Mar-22 quarter. OPMs tapered by 28 bps on a sequential basis.
On a yoy basis, the net profits were up 23.82% at Rs.10,443 crore, helped by stable NIMs and lower provisions. For Q4, provisions and contingencies were lower at Rs.3,312 crore compared to Rs.4,694 crore in Mar-21 quarter. Credit cost ratio was up 2 bps at 0.96% amidst rising yields. PAT margins improved from 20.62% to 23.76% on a yoy basis. The CASA deposits comprised 48.2% of the total deposits as of the close of the fourth quarter.