HDFC Bank Q4 profit rises marginally to Rs 16,512 crore, misses street estimates

HDFC's Financials Released: HDFC Bank, one of the country's leading private lenders, announced its quarterly financial results, falling short of profit expectations but maintaining stable margins. For the January-March period, the bank recorded a standalone net profit of Rs 16,512 crore ($1.98 billion), below analysts' projected Rs 17,315 crore, yet higher than the previous quarter's Rs 16,373 crore.

Provisions and contingencies surged to Rs 13,510 crore, up from Rs 4,217 crore in the preceding quarter, primarily to fortify the balance sheet against potential risks. Notably, floating provisions accounted for 109 billion rupees of the total provisions for the quarter.

Net interest income up

Despite challenges, the bank's net interest income rose by 2.1 per cent from the previous quarter to Rs 29,080 crore. However, its core net interest margin stood at 3.44 per cent on total assets and 3.63 per cent on interest-earning assets, slightly below the previous quarter's figures. This was attributed to higher borrowing costs and a lower-yielding loan book.

HDFC Bank's loan growth moderated to 1.6 per cent sequentially, reaching Rs 25.08 lakh crore, while deposits grew by 7.5 per cent to Rs 23.8 lakh crore. The bank maintained stable asset quality, with a gross non-performing assets ratio of 1.24 per cent at the end of March, compared to 1.26 per cent three months earlier.

The market responded positively, with HDFC Bank's shares closing 2.5 per cent higher on Friday ahead of the results announcement.

(With Reuters Inputs)