HDFC Bank Q4 result | Net profit jumps 23% YoY to Rs 10,055 crore as provisions dip, NII up 10.2%

HDFC Bank’s deposits increased by 16.8 percent year on year to 15.59 lakh crore in March 2022, with retail deposits increasing by 18.5 percent and wholesale deposits increasing by 10%.

HDFC Bank, India’s largest private sector lender, reported a 23% year-on-year (YoY) increase in standalone net profit to Rs 10,055.2 crore for the quarter ended March 2022, as bad loan provisions decreased by 29%, indicating continued asset quality improvement.

Profitability on a stand-alone basis was Rs 8,186.51 crore a year ago.

Net interest income (NII), which is the difference between interest earned and interest paid, increased 10.2 percent year on year to Rs 18,872.7 crore in Q4, driven by nearly 21% growth in credit and 16.8% growth in deposits.

Core net interest margin was 4% on total assets and 4.2 percent on interest-earning assets, the bank stated in an April 16 BSE filing.

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Additionally, HDFC Bank reported that its advances increased by 20.8 percent year on year to Rs 13.69 lakh crore in the fourth quarter of FY22, with growth of 15% in the retail loan book, 30.5 percent in commercial and rural banking loans, and 17.5 percent in corporate and other wholesale loans.

As of March 2022, the bank had grown deposits by 16.8 percent year on year to Rs 15.59 lakh crore, with retail deposits increasing by 18.5 percent and wholesale deposits increasing by 10%.

As of March 2022, the share of Current Account Savings Accounts (CASA) deposits was Rs 7.51 lakh crore, up approximately 22% year on year, while the ratio of CASA deposits increased to 48 percent in the March 2022 quarter, up from 46.1 percent in the preceding fiscal period, the bank said.


Provisions and contingencies decreased by 29.4 percent to Rs 3,312.4 crore at the end of the March 2022 quarter, but increased 10.6 percent sequentially.

Total provisions for the March 2022 quarter included approximately Rs 1,000 crore in contingent provisions, the bank stated, adding that floating provisions totaled Rs 1,451 crore and contingent provisions totaled Rs 9,685 crore as of March 2022.

Asset quality improved further in the March quarter, with gross non-performing assets (as a percentage of gross advances) falling 9 basis points sequentially to 1.17 percent and net non-performing assets (as a percentage of net advances) falling 5 basis points sequentially to 0.32 percent.

Non-interest income (or other income) increased by about half a percent to Rs 7,637 crore in Q4FY22, the bank said, due to a loss on sale or revaluation of investments of Rs 40.3 crore during the quarter (compared to income of Rs 655.1 crore in the same period last year).

The fees and commissions segment, which accounted for 74% of other revenue, increased by 11% to Rs 5,630.3 crore during the same period.

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Pre-provision operating profit (PPoP) of Rs 16,357 crore increased by 5.3 percent year on year (YoY) as operating expenses increased by 10.6 percent.


The bank stated that its total capital adequacy ratio (CAR) was 18.9 percent as of March 2022, up from 18.8 percent in the same period last year, with Tier-I CAR increasing by 30 basis points year over year to 17.9 percent.

The bank purchased loans totaling Rs 8,117 crore through the direct assignment route under the home loan arrangement with Housing Development Finance Corporation during the quarter ended March 2022. (HDFC).

The bank reported a profit of Rs 36,961.3 crore for the fiscal year 2021-22, an increase of 18.8 percent over the previous year, and net interest income of Rs 72,009.6 crore, an increase of 11% over the previous year.

The board of directors of HDFC approved the merger with HDFC Bank on April 4 of this year. The combined entity would be the third largest in India in terms of market capitalisation, pending approvals from the Reserve Bank of India, the Competition Commission of India, the National Housing Bank, and the Insurance Regulatory and Development Authority of India. HDFC shareholders will receive 42 HDFC Bank equity shares for every 25 HDFC Bank shares held.

The private sector lender added 563 branches in the March quarter, bringing the total to 6,342 as of the end of fiscal year 22.

HDFC Bank’s share price fell 1% in the current calendar year (2022) and gained 2.4 percent in the previous year, underperforming both the BSE Sensex and the S&P 500. The benchmark Sensex index gained 0.14 percent and the Nifty 50 index gained 19.5 percent, respectively.

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