HDFC Bank Q4 Earnings 2024 Highlights: Net profit at ₹16,512 crore, Retail loans lead with 108.9% growth

Provisions and contingencies for the quarter were ₹13,500 crore which included floating provisions of ₹10,900 crore, the bank said. For FY24, the total profit of the private lender stood at ₹64,060 crore. 

HDFC Bank made higher provisions against potential bad loans, while its lending margins were stable. HDFC's higher borrowing costs and lower-yielding loan book weighed on the merged entity's margins. D-Street analysts had expected the lender to slow loan growth in favour of deposit growth until it restored key ratios to pre-merger levels.

The bank's net revenue surged to ₹47,240 crore, inclusive of transaction gains of ₹7,340 crore from the stake sale in subsidiary HDFC Credila Financial Services during the quarter.

Gross NPA at ₹31,173.3 crore compared to ₹31,011.7 crore

The bank's gross non-performing asset (NPA) stood at 1.24 percent, down from 1.26 percent in the last quarter. On the other hand, net NPA for the quarter stood at 0.33 percent compared to 0.31 percent.

HDFC Bank witnessed a significant surge in retail loans for the financial year ending on March 31, 2024. Retail loans led the charge with a whopping 108.9 per cent growth compared to the previous year. Overall gross advances increased by 55.4 per cent, even after accounting for interbank transactions. Commercial and rural banking loans also saw a healthy growth of 24.6 per cent, while corporate and wholesale loans grew at a more modest pace of 4.2 per cent. Notably, overseas advances constituted a minor portion of the total advances, at only 1.5 per cent.

The bank's net interest income, the difference between the interest it earned and the interest it paid, increased by 24.5 per cent to ₹290.8 billion for the quarter that ended March 31, 2024, from ₹233.5 billion in the same quarter of the previous year. The core net interest margin, a measure of how much interest the bank earned on its total assets, was 3.44%, and on its interest-earning assets, it was 3.63%.

Total Deposits increased by 26.4% to ₹23,798 billion as of March 31, 2024, compared to March 31, 2023. CASA (Current Account and Savings Account) deposits grew by 8.7%, with savings account deposits at ₹5,987 billion and current account deposits at ₹3,100 billion. Time deposits rose by 40.4% to ₹14,710 billion. As a result, CASA deposits comprised 38.2% of total deposits as of March 31, 2024.

The Bank’s net revenue grew by 47.3% to ₹ 472.4 billion (including transaction gains of ₹ 73.4 billion from stake sale in subsidiary HDFC Credila Financial Services Ltd) for the quarter ended March 31, 2024 from ₹ 320.8 billion for the quarter ended March 31, 2023.

HDFC Bank Q4 Results: The stocks of HDFC bank were trading in green, up 2.64 per cent at ₹1,534.2

India's largest private sector lending bank proposed a dividend of ₹19.5 per share. “We are pleased to inform that the Board of Directors, at its meeting held today, has recommended a dividend of Rs. 19.50 per equity share of Re. 1/- each fully paid up (i.e. 1950 %) out of the net profits for the year ended March 31, 2024, subject to the approval of the shareholders at the ensuing Annual General Meeting (“AGM”) of the Bank,” the Bank said in an exchange filing.

HDFC Bank's earnings per share (EPS) for the fourth quarter that ended in March 2024 stood at ₹23.2 on April 20.

India's private sector Bank's consolidated net revenue grew by 133.3% as per exchange filing

Net profit rises 37% YoY to ₹16,512 crore

The Private Banks (excluding HDFCB) would report a PPoP growth of 6% YoY/ 2% QoQ, and a PAT growth of 6% YoY/5.3% QoQ. Earnings growth would be supported by robust business growth, normalized opex, and controlled credit costs. We expect the pace of NIM compression to moderate vs. 3Q/2Q levels and NII to grow 15.4% YoY (ex-HDFCB).

HDFC Bank’s loan growth was muted at 1.6% on a quarter-on-quarter basis. While retail and commercial and rural banking loan growth was a strong 4% sequentially, wholesale advances, excluding non-individual loans of the erstwhile HDFC Ltd, declined 2%. This is in line with the strategy of reducing the share of relatively low-yielding corporate loans to improve margins.

“HDFC Bank had a solid performance in Q4 FY24. Deposits surged by 7.5%, reaching ₹1.6 lakh crore. Total advances jumped by 55%, and deposits increased by 26% year-on-year. Although the share of low-cost deposits dropped slightly to 38%, retail deposits saw a notable 27.8% increase, totaling ₹9.09 lakh crore. Gross advances stood at ₹25.08 lakh crore, reflecting strong growth across retail, commercial, rural, and corporate sectors,” Aditya Goela, CFA, Co-Founder of Goela School of Finance, told Mint.

Hdfc share will give approx 15% return. Target price 1800 INR upside , so almost 20 per cent return there.

Out of 30 analysts covering the company as of 20 April 2024, 4 analysts have a Hold rating, 14 analysts recommend buying, and 12 analysts suggest a Strong Buy rating, as per Mint.

The bank’s net interest income (NII) during the quarter is estimated to grow 24.2% to ₹29,010 crore from ₹23,351.8 crore, YoY, as per Mint report.

HDFC Bank posted  a growth of 33% in net profit at ₹16,372  crore for its October-December quarter results for fiscal 2023-24 (Q3FY24) on January 16. HDFC Bank's net interest income came in at ₹28,470 crore in the December quarter, reporting a growth of 24 per cent year-on-year.

HDFC Bank, India's largest private sector lender, saw attrition of 34.15% in FY23

HDFC Bank, the largest private sector lender in India, is expected to report strong Q4 results with a decent growth in net profit led by treasury income.

HDFC Bank Q4FY24 Earnings: The stocks of private sector lender closed in green up 2.46 per cent at ₹1531.30 on April 19 (Friday).

HDFC Bank Q4FY24 Earnings: HDFC Bank is likely to post a net profit of ₹15,663 crore in Q4FY24, a growth of 30% from ₹12.047.5 crore in the year-ago quarter, as per average estimates of five brokerages. The lender’s treasury income for the March 2024 quarter is expected to be at ₹1,000 crore.