HDFC Bank reports marginal rise in Q4 net profit, NII
HDFC Bank has disclosed its Q4 results, indicating a slight uptick in net profit and net interest income (NII). The bank's net profit for the January-March quarter of fiscal year 2023-24 stood at ₹16,511 crore, marking a modest increase of 0.84% from ₹16,373 crore in the preceding quarter. Concurrently, NII rose to ₹29,007 crore from ₹28,470 crore reported in the previous quarter.
Results fall short of market expectations
Despite the marginal increase, HDFC Bank's Q4 results did not meet market expectations. Analysts had predicted a net profit of ₹16,576 crore and an NII of ₹29,172 crore for the quarter. However, the bank's actual figures fell short. The comparison with year-on-year financial results is complicated due to the bank's merger with parent company HDFC Ltd during the year.
NPA ratios and net revenue in Q4
In the last quarter, HDFC Bank's gross non-performing asset (NPA) ratio slightly decreased to 1.24% from 1.26%. However, the net NPA for the same period saw a slight increase, standing at 0.33% compared to the previous quarter's 0.31%. The bank also reported growth in net revenue, reaching ₹47,240 crore, which includes transaction gains of ₹7,340 crore from selling stakes in subsidiary HDFC Credila Financial Services during the quarter.
Dividend recommendation and provisions
The board of directors at HDFC Bank has recommended a dividend of ₹19.5 per equity share of ₹1 for the year ending March 31, 2024. For the quarter, the bank set aside provisions and contingencies amounting to ₹13,500 crore, which comprised floating provisions of ₹10,900 crore. The total profit for FY24 stood at a substantial ₹64,060 crore. These fiscal measures reflect the bank's financial strategy amid market fluctuations.
