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Hdfc Bank Q4fy22: From Interest Income To Retail Loans, 10 Key Points

During the quarter, the bank’s top-line front also witnessed strong growth in other income, while advances and deposits posted double-digit growth. The bank’s liquidity position also remains healthy.

Here are 10 key highlights of HDFC Bank’s financial performance for the fourth quarter of FY22:

1. Net Revenues:

HDFC Bank’s net revenues which include both interest income and other income, rose by 73% to 26,509.8 crore during Q4FY22 versus 24,714.1 crore for the quarter ended March 31, 2021.

If trading income is excluded, then the net revenues will be at 26,550.2 crore in Q4FY22 with a growth of 10.4% from 24,059.0 crore for the same quarter last year.

2. Net interest income driven by strong advances:

Net interest income (NII) is a difference between interest earned and interest expended. NII in Q4FY22 stood at 18,872.7 crore rising by 10.2% yoy. While core net interest margin came in at 4% on total assets, and 4.2% based on interest-earning assets.

During the period, advances were up 20.8%, with the growth coming across products and segments.

As of March 2022, total advances were at 1,368,821 crore, an increase of 20.8% over March 31, 2021. In the quarter under review, 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.

The bank’s liquidity was stable in the quarter as well. In Q4FY22, the liquidity coverage ratio was healthy at 112%, well above the regulatory requirement.

” We continued to add new liability relationships at a robust pace of 2.4 million during the quarter,” HDFC Bank said.

3. Other income:

In the banking space, other income is referred to as non-interest revenue. HDFC Bank earned an other income of 7,637.1 crore was 28.8% of net revenues during Q4FY22 against 7,593.9 crore in the corresponding quarter of the previous year.

Excluding trading income, in Q4FY22, other income increased by 10.6% over the quarter ended March 31, 2021.

Four components of other income in Q4FY22 were fees & commissions of 5,630.3 crore ( 5,023.3 crore in the corresponding quarter of the previous year); foreign exchange & derivatives revenue of 892.5 crore ( 879.3 crore in the corresponding quarter of the previous year); loss on sale/revaluation of investments of 40.3 crore (gain of 655.1 crore in the corresponding quarter of the previous year); and miscellaneous income, including recoveries and dividend, of 1,154.7 crore ( 1,036.2 crore in the corresponding quarter of the previous year).

4. Provisions:

In the quarter, pre-provision Operating Profit (PPOP) was at 16,357.0 crore. PPOP, excluding trading income, grew by 10.2% over the quarter ended March 31, 2021.

Meanwhile, provisions and contingencies for the quarter ended March 31, 2022, were 3,312.4 crore as against total provisions of 4,693.7 crore for the quarter ended March 31, 2021. Total provisions for the current quarter included contingent provisions of approximately 1,000 crore.

5. Asset quality:

The bank’s gross non-performing assets were at 1.17% of gross advances in Q4FY22, as against 1.26% in Q3FY22 and 1.32% in Q4FY21. 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 crore 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.

6. Total deposits:

In Q4FY22, the bank garnered total deposits of 1,559,217 crore, an increase of 16.8% on a year-on-year basis. CASA deposits grew by 22.0% with savings account deposits at 511,739 crore and current account deposits at 239,311 crore. Time deposits came in at 808,168 crore, 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.

The total balance sheet size as of March 31, 2022, was at 2,068,535 crore as against 1,746,871 crore as of March 31, 2021, a growth of 18.4%.

7. Capital Adequacy:

During Q4FY22, the bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 18.9% versus 18.8% as of March 31, 2021. The CAR was also against the 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).

8. 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.

Additionally, the bank has 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).

9. Consolidated financial performance:

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.

10. FY22 earnings:

For the year ended March 31, 2022, a total income of 157,263.0 crore was recorded by the bank against 146,063.1 crore for the year ended March 31, 2021. Net revenues (net interest income plus other income) for the year ended March 31, 2022, were at 101,519.5 crore, as against 90,084.5 crore 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.

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