HDFC Bank Q4FY22 Results Update

On 16th April 2022 India’s largest private sector bank, HDFC Bank announced its quarterly results for the last quarter of FY2022.

Key Highlights:

Q4FY22 Performance updates:

- The net revenues of HDFC Bank increased by 7.3% to ₹ 26,509.8 crores for Q4FY22, from ₹ 24,714.1 crores for Q4FY21.

- Net interest income for Q4FY22, grew by 10.2% to ₹ 18,872.7 crores from ₹ 17,120.2 crores in Q4FY21.

- Advances were up 20.8%, with the growth coming across products and segments. The core net interest margin was at 4.0% on total assets, and 4.2% based on interest-earning assets.

- The bank added 563 branches and 7,167 employees during the quarter and 734 branches and 21,486 employees during the year.

- Profit before tax (PBT) for Q4FY22, at ₹ 13,044.7 crores grew by 20.3% over the corresponding quarter of the previous year. The Bank earned a net profit of ₹ 10,055.2 crores, an increase of 22.8% over the quarter ended March 31, 2021.

FY22 Annual Performance:

- The total balance sheet size for FY22 was ₹ 2,068,535 crores as against ₹1,746,871 crores for FY21, a growth of 18.4%.

- For FY22, Total deposits were ₹ 1,559,217 crores, an increase of 16.8% over FY21. CASA deposits grew by 22.0% with savings account deposits at ₹ 511,739 crore and current account deposits at ₹ 239,311 crores. Time deposits were at ₹ 808,168 crores, an increase of 12.3% over the corresponding quarter of the previous year, resulting in CASA deposits comprising 48.2% of total deposits as of March 31, 2022.

- Total advances as of March 31, 2022, were ₹ 1,368,821 crores, an increase of 20.8% over March 31, 2021. Retail loans grew by 15.2%, commercial and rural banking loans grew by 30.4% and corporate and other wholesale loans grew by 17.4%. Overseas advances constituted 3.1% of total advances

- For FY22, the Bank earned a total income of ₹ 157,263.0 crores as against ₹ 146,063.1 crores for the year ended March 31, 2021. Net revenues (net interest income plus other income) for the year ended March 31, 2022, were ₹ 101,519.5 crores, as against ₹ 90,084.5 crores for the year ended March 31, 2021. Net profit for the year ended March 31, 2022, was ₹ 36,961.3 crore, up 18.8% over the year ended March 31, 2021.

- The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 18.9% as of March 31, 2022 (18.8% as of March 31, 2021) as against a regulatory requirement of 11.7% which includes a Capital Conservation Buffer of 2.5%, and an additional requirement of 0.2% on account of the Bank being identified as a Domestic Systemically Important Bank (D-SIB). Tier 1 CAR was at 17.9% as of March 31, 2022, compared to 17.6% as of March 31, 2021. Common Equity Tier 1 Capital ratio was at 16.7% as of March 31, 2022. Risk-weighted Assets were at ₹ 1,353,511 crore (as against ₹ 1,131,144 crore as at March 31, 2021).

Network:

- As of March 31, 2022, the Bank’s distribution network was at 6,342 branches and 18,130 ATMs / Cash Deposit & Withdrawal Machines (CDMs) across 3,188 cities / towns as against 5,608 branches and 16,087 ATMs / CDMs across 2,902 cities / towns as of March 31, 2021.

- 50% of our branches are in semi-urban and rural areas. In addition, we have 15,341 business correspondents, which are primarily manned by Common Service Centres (CSC).

- The number of employees was 141,579 as of March 31, 2022 (as against 120,093 as of March 31, 2021)

Asset Quality:

- Gross non-performing assets were at 1.17% of gross advances as of March 31, 2022, as against 1.26% as on December 31, 2021, and 1.32% as on March 31, 2021. Net nonperforming assets were at 0.32% of net advances as of March 31, 2022.

- The Bank held floating provisions of ₹ 1,451 crore and contingent provisions of ₹ 9,685 crores as of March 31, 2022. Total provisions (comprising specific, floating, contingent, and general provisions) were 182% of the gross non-performing loans as of March 31, 2022.

Consolidated Financial Results:

- The consolidated net profit for the quarter ended March 31, 2022, was ₹ 10,443 crore, up 23.8%, over the quarter ended March 31, 2021. Consolidated advances grew by 19.9% from ₹ 1,185,284 crore as on March 31, 2021 to ₹ 1,420,942 crore as on March 31, 2022.

- The consolidated net profit for the year ended March 31, 2022, was ₹ 38,053 crore, up 19.5%, over the year ended March 31, 2021.

On Monday, The stock declined 3.63 percent to Rs.1,411.65 on the BSE. On the NSE, it went lower by 3.66 percent to Rs.1,411.30.