HDFC Bank posts stellar Q4 earnings: Top ten things to take note

HDFC Bank reported an 18.2 per cent growth in net profit at Rs 3,990 crore for the March quarter. The country's second-largest private sector lender had posted a net profit of Rs 3,374 crore in the January-March period of 2015-16 fiscal.

Private sector lender HDFC Bank on Friday reported earnings for the quarter and fiscal ending March 31, 2017. The earnings were above street expectations. We look at top ten takeaways of the earnings of the Mumbai-based lender.

NET PROFIT

HDFC Bank reported an 18.2 per cent growth in net profit at Rs 3,990 crore for the March quarter. The country's second-largest private sector lender had posted a net profit of Rs 3,374 crore in the January-March period of 2015-16 fiscal. It posted Rs 3865.33 crore net profit during the third quarter of last fiscal.

BAD LOANS

Bad loans provisioning rose sharply during the quarter to Rs 1,261 crore, up from Rs 662 crore in the January-March period of 2015-16, it said. It had provisions of Rs 717.78 crore in the third quarter of last fiscal.

NPAs

Its gross non-performing assets rose to Rs 5,885.66 crore for the quarter ending March 31, 2017. The bank reported Rs 4392.83 crore in Gross NPAs for the quarter ending March 31 , 2016. For the quarter ending December 2016 too, the bank posted rising NPAs of Rs 5233.37 crore.

TOTAL INCOME

Total income during the fourth quarter rose to Rs 21,560 crore, up from Rs 18,862 crore in the same quarter of the previous fiscal.

REVENUES

Net revenues (net interest incomes plus other income) rose 21.1 percent to Rs 12,501.4 crore in the fourth quarter compared with Rs 10,319.2 crore for the corresponding quarter of the previous year.

NET INTEREST INCOME

Net interest income (NII: interest earned less interest expended) for Q4 of last fiscal rose 21.5 percent to Rs 9055.1 crore from Rs 7453.3 crore for the quarter ended March 31, 2016. The Bank's total capital adequacy ratio (CAD) as per Basel III guidelines stood at 14.6 percent as of quarter ended March 31 as against a regulatory requirement of 10.25 percent.

OPERATING EXPENSES

Operating expenses for Q4 stood at Rs 5222.0 crore, a rise of 13.9 percent over Rs 4584.3 crore during the corresponding quarter of the previous year.

NET PROFIT FOR FISCAL

For full 2016-17 fiscal, HDFC Bank reported a net profit of Rs 14,549 crore, a growth of 18.3 per cent over the previous financial year. Gross non-performing assets (NPA) of the bank as a percentage of total advances rose to 1.05 per cent during the March quarter, from 0.94 per cent in the same quarter of 2015 -16 fiscal.

DIVIDEND

The bank's board has recommended a dividend of Rs 11 per equity share of Rs 2 each (550 per cent) out of the net profits for the year ended March 31, 2017.

DEPOSITS

Total balance sheet size as of March 31, 2017 was Rs 863,840 crore as against Rs 740,796 crore as of March 31, 2016. Total deposits on March 31, 2017 were Rs 6,43,40 crore, an increase of 17.8 per cent over March 31, 2016. Current account deposits rose 30.7 percent on an year on year on year basis to reach Rs 115,574 crore and savings accounts deposits by 30.9 percent to reach Rs 193579 crore.