HDFC Bank Profit Rises By 18% In The 2020-21 Financial Year

HDFC Bank Profit Rises By 18% In The 2020-21 Financial Year

HDFC Bank Q4 FY21 results: On Sunday, 17 April 2021 HDFC Bank, the country’s largest private lender asserted a net profit of ₹8,186.51 crores. HDFC Bank profit rose to 18 percent in the January – March quarter from ₹6,927.69 crores at the same time last year. The total income of the bank was raised to ₹38,017 from ₹35,917 in the year ago period. The total income earned by the bank was ₹1,46,063.1 crore at the end of 31st March 2021. 

HDFC Bank’s provisions rose 25 percent y-o-y to ₹4,693.7 crores. In their statement, the bank said that the total funds for the current quarter involve ₹1,300 crores in contingent funds. Gross non performing asset (NPA) of the bank is in the ratio of Q4 that rose 41 basis points (bps) chronologically to 1.32 percent and the net NPA ratio was a rise from 31 bps to 0.4 percent as the supreme court emptied a halt on recognition of bad loans after 31st August 2020. On a confirmed basis, the gross non performing asset ratio fell to 4 bps from 1.36 percent by the end of December 2020.

“The Bank also continues to hold provisions as on March 31, 2021, against the potential impact of Covid-19 based on the information available at this point in time and the same are in excess of the RBI prescribed norms,” HDFC Bank said.

The bank held some floating funds of ₹1,451 crores and a contingent fund of ₹5,861 crores till March 31, 2021. A total provision of the bank constituting some specific floating, contingent and general provisions was 153 percent of the gross non performing assets by the end of March 31, 2021. The fundamental net interest margin (NIM) in Q4 stood unchanged on a subsequent basis at 4.2 percent. 

Total advances of the bank as of March 31, 2021, were ₹11.33 lakh crore. This was a hike of 14 percent over 31st March 2020. Bank’s domestic advances grew by 14.1 percent y-o-y. On the other hand, domestic retail grew by 6.7 percent and domestic wholesale grew by 21.7 percent. The ratio of domestic loans as per Basel 2 categorization was retail: wholesale is 47:53. Among these overseas advances constituted 3% of the total advances. 

The total amount deposited by 31st march 2021 was ₹13.35 lakh crore, which rose by 16.3 percent than March 31, 2020. The deposits of the current account savings account (CASA) grew by 27%. That constituted a savings account deposit of ₹4.03 lakh crore and the current account deposit of ₹2.12 lakh crore. Added to that time account deposits perched at ₹7.19 lakh crore which is an increase of 8.5 percent above the corresponding quarter of the previous year. The ratio of CASA was 46.1 percent as compared to 42.2 percent a year ago. 

The total capital adequacy ratio (CAR) of the lender according to Basel III instructions was at 18.8 percent as of 31 March 2021. This ratio is up from HDFC Bank profit of 18 percent as of 31 March 2021, and that too against the authoritative requirement of 11.075 percent. The Tier-1 CAR as of March 31, 2020, was 17.2 percent. Compared to that the Tier-1 CAR as of March 31, 2021, was 17.6 percent. As of March 31, 2021, the common equity tier- (CET-1) was at a ratio of 16.9 percent. And finally, the risk weighted assets were at ₹9.95 lakh crore on March 31, 2020, compared to ₹11.31 lakh crore on March 31, 2021.

HDFC Bank’s 2021 Results In Gist

  1. On a subsequent basis, the standalone net profit declined by 6.5%. 
  2. The net interest income of HDFC Bank grew by 12.6 percent to ₹17,120 crores in the fourth quarter. 
  3. The non interest revenue of the bank grew by 25.9 percent compared to the previous year. 
  4. The operating outlay for the fourth quarter increased by 10.9 percent over the previous fiscal year. 
  5. The net revenue or net interest income of HDFC Bank increased to ₹24,714.1 crores from ₹21,236.3 crores. 
  6. As of March 31, 2021, the gross non performing assets (NPA) stood at 1.32 percent of gross advance. That is compared to 1.38 percent by the end of December quarter, says HDFC Bank.  
  7. In the 2020-21’s third quarter, a profit of ₹8758.3 crores was reported. 
  8. Along with these the bank also reported an operating profit of the pre-provision which witnessed a significant growth as compared to the correlated quarter of the previous fiscal. 
  9. On Friday, April 16 BSE settled the shares of HDFC Bank at 0.12 percent lower at ₹1428.45 per share.
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Andrey Ivanov

Andrey Ivanov is a business and finance expert. He has analyzed the finance and business market closely and writes all his articles with utmost precision.

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