The HDFC Bank reported that its board of directors proposed a dividend of ₹19.5 for each equity share of Re 1 for the fiscal year ending on March 31, 2024.
In the latest quarter from January to March 2024, HDFC Bank made a standalone net profit of ₹16,512 crore. This is a slight increase from the ₹16,373 crore profit they made in the previous quarter (October-December 2023). It’s important to note that HDFC Bank merged with its parent company, Housing Development Finance Corporation (HDFC), in July. Due to this merger, the results cannot be directly compared to the same quarter from the previous year.
India’s largest private bank maintained its good asset quality position, with a slight improvement in its non-performing assets (NPA) ratios. At the end of March, the gross NPA ratio was 1.24%, slightly better than the 1.26% from three months ago. The net NPA ratio also saw a small increase to 0.33% from 0.31% in the previous quarter.
HDFC Bank reported that its bad loans (Non-Performing Assets) amounted to around ₹31,173.3 crore, out of which the actual loss was about ₹8,091.7 crore. The bank saw a jump in its total revenue to ₹47,240 crore, which includes a significant gain of ₹7,340 crore from selling a stake in its subsidiary HDFC Credible Financial Services.
Image credit: times of india
HDFC Bank’s main source of income, known as net interest income, increased to ₹29,080 crore for the quarter, while its other income reached ₹18,170 crore. The bank also disclosed that it earned a net interest margin of 3.44% on its total assets.
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Furthermore, the bank’s board of directors proposed a dividend of ₹19.5 per share for the fiscal year ending March 31, 2024.
HDFC Bank set aside more money for potential bad loans, but maintained stable lending profits. The bank’s margins were impacted by higher borrowing costs and lower returns from its loan portfolio after a merger. Financial analysts predicted that the bank would focus on growing deposits rather than loans to improve key financial ratios following the merger.
In the last quarter, the bank set aside ₹13,500 crore for potential costs and uncertainties, with ₹10,900 crore specifically for floating provisions. Throughout the entire fiscal year 2024, the bank reported a total profit of ₹64,060 crore. At the end of the week, HDFC Bank’s shares finished 2.46% higher at ₹1,531.30 each on the Bombay Stock Exchange (BSE).