Nii Up 2.3% Qoq To Rs 18,873 Crore; Profit After Tax Dips 2.8% Sequentially To Rs 10,055 Crore

HDFC Bank Limited on Saturday reported a net interest income (NII) of Rs 18,872.70 crore for the quarter ended March 31, 2022, a 2.3 percent sequential (quarter-on-quarter) increase and a 10.24 percent year-on-year increase. This was slightly lower than the Rs 19,960 crore predicted by analysts polled by CNBCTV-18.

The bank reported a profit after tax of Rs 10,055.20 crore, a 2.8 percent drop QoQ, but a 22.8 percent YoY increase. In its quarterly earnings report released on Saturday, the bank reported a consolidated net profit of Rs 10,443.01 crore, a 1.32 percent dip QoQ, but a 24 percent increase YoY.

Overall, it was an operationally weak quarter for the bank with its lowest-ever operating profit growth and its net interest margin (NIM) at an all-time low.

Total income (standalone) rose to Rs 41,085.78 crore during Q4 FY22 as against Rs 38,017.50 crore in the year-ago period. Net revenues (net interest income plus other income) increased by 7.3 per cent to Rs 26,509.80 crore for the quarter ended March, from Rs 24,714.10 crore earlier, the bank said.

On the asset quality front, the bank said the gross non-performing assets (NPAs) were at Rs 16,141 crore, 1.17 per cent of the gross advances as on March 31, 2022, as against 1.26 per cent earlier — the lowest in five quarters. The GNPAs increased 0.8 percent QoQ.

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Net NPAs (or bad loans) stood at Rs 4,407.7 crore,or 0.32 per cent of the net advances, compared to 0.37 per cent earlier, also the lowest in five quarters. The NNPAs reduced 5.75 percent QoQ. Further, the bank said its NIM was at an all-time low of 4 percent, as against 4.1 percent in the previous quarter, while Operating profit growth stood at 5.3  percent YoY, the lowest in 23 quarters.

Further, the bank said it has created contingent provisions in the reporting quarter, taking the total contingent provisions to Rs 9,685 crore, up 12.15% percent QoQ.

The bank said its non-interest revenue stood at Rs 7,637.10 crore, which was 28.8 percent of net revenues in the reported quarter. This was a 0.57 percent increase over the Rs 7,593.9 crore reported in Q3FY22, and a 10.6 percent YoY increase. This includes revenue from fees and commissions (Rs 5,630.3 crore), foreign exchange and derivates (Rs 892.5 crore), loss on sale/revaluation of assets (Rs 40.3 crore), and miscellanious income (Rs 1,154.7 crore).

Further, the bank said it added 563 branches and 7.167 employees in the reported quarter and a total of 734 branches and 21,486 employees during the fiscal.

First Published: Apr 16, 2022, 02:55 PM IST