India’s second largest private lender, HDFC Bank reported a 20 percent rise in its net profit for the March quarter. The bank’s net profit stood at Rs 4,799 crore against Rs 3,990 crore in corresponding quarter last year. The results for the quarter were approved by the Board of Directors of HDFC Bank Limited at a meeting held on Saturday, April 21, 2018. According to a press release by the bank, its total income for the quarter ended March 31, 2018 was Rs 25,549.7 crore, up from Rs 21,560.7 crore for the quarter ended March 31, 2017.
Net revenues (net interest income plus other income) increased by 19.1% to Rs 14,886.3 crore for the quarter ended March 31, 2018 from Rs 12,501.4 crore in the corresponding quarter of the previous year, the statement said. Meanwhile, the net interest income (interest earned less interest expended) for the quarter ended March 31, 2018 grew by 17.7% to Rs 10,657.7 crore, from Rs 9,055.1 crore for the quarter ended March 31, 2017, driven by average asset growth of 16.9% and a core net interest margin for the quarter of 4.3%.
The bank also approved raising up to Rs 50,000 crore through private placement of perpetual debt instruments in the next 12 months, it confirmed in a filing to BSE. The consolidated net profit for the year ended March 31, 2018 was Rs 18,510.0 crore, up 21.4 per cent over the year ended March 31, 2017.
The Bank said that its consolidated advances also grew by 19.6 per cent from Rs 5,85,481 crore as on March 31, 2017 to Rs 7,00,034 crore as on March 31, 2018.
On the asset quality, it said gross non-performing assets (bad loans) were at 1.30 per cent of gross advances as on March 31, 2018, as against 1.29 per cent as on December 31, 2017 and 1.05 per cent as on March 31, 2017.
The net non-performing assets were at 0.4 per cent of net advances as on March 31, 2018. The bank held floating provisions of Rs 1,451 crore as on March 31, 2018. Apart from improving the financial results, the bank’s board also recommended a dividend of Rs 13 per equity share of Rs 2 for the year (650 per cent) ended March 31, 2018, as against, 11 per equity share of Rs 2 for the previous year. This would be subject to approval by shareholders at the next annual general meeting.
HDFC said that the Board of Directors have also approved the issue of Perpetual Debt Instruments (part of Additional Tier I capital), Tier II Capital Bonds and Long Term Bonds (financing of infrastructure and affordable housing) up to a total amount of Rs 50,000 crore in the period of next twelve months through private placement mode, subject to the approval of the shareholders at the ensuing Annual General Meeting of the Bank and any other regulatory approvals as applicable.
“Operating expenses for the quarter ended March 31, 2018 were Rs 6,050.6 crore, an increase of 15.9% over Rs 5,222.0 crore during the corresponding quarter of the previous year. The core cost-to-income ratio for the quarter was at 40.6% as against 42.4% for the corresponding quarter ended March 31, 2017,” the statement added.