HDFC Bank Q4 results 2018: Profit soars 20% yoy to Rs 4,799 cr; to issue bonds worth Rs 50,000 crore

HDFC Bank Q4 results 2018: This private sector lender posted net profit of Rs 4,799.28 crore in Q4FY18, witnessing growth by 20.27% compared to net profit of Rs 3,990.09 crore in the corresponding period of the previous year.

A customer walking out of a HDFC Bank branch. Photo: Youtube

HDFC Bank Q4 results 2018: Largest private lender HDFC Bank in it’s fourth quarter ended financial performance for FY18, missed analysts estimates in terms of standalone net profit despite reporting a 20% yearly growth. HDFC Bank posted net profit of Rs 4,799.28 crore in Q4FY18, witnessing growth by 20.27% compared to net profit of Rs 3,990.09 crore in the corresponding period of the previous year. The bank's current net profit also increased by 3.37% as against Rs 4,642.60 crore of the preceding quarter. A Bloomberg poll of analysts expected HDFC Bank's PAT to be around Rs 4,860 crore in Q4FY18.

HDFC Bank net interest income (NII) as on March 2018, came in at Rs 10,657.69 crore, registering growth of 17.70% and 3.32% in comparison with NII of Rs 9,055.10 crore in Q4FY17 and Rs 10,314.34 crore in Q3FY18 respectively. NII was driven by average asset growth of 16.9% and a core net interest margin for the quarter of 4.3%. HDFC Bank's 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.

Meantime, HDFC Bank provisions for NPA stood at Rs 1,541.10 crore, which grew by 22.13% from Rs 1,261.80 crore in Q4FY17 and by 14.03% compared to Rs 1,351,44 crore in Q3FY18. Gross non-performing assets (GNPA) was at Rs 8,606.97 crore during the quarter, surging by 46.24% from Rs 5,885.66 crore in Q4FY17 and by 4.52% from Rs 8,234.86 crore in Q3FY18. In percentage terms, GNPA remained stable by just gradually rising to 1.30% in Q4FY18 versus 1.05% in Q4FY17 and 1.29% in Q3FY18.

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Net NPA were at 0.4% of net advances as on March 31, 2018. HDFC Bank held floating provisions of Rs 1,451 crore as on March 31, 2018.

Other income (non-interest revenue) at Rs 4,228.6 crore was 28.4% of the net revenues for the quarter ended March 31, 2018 and grew by 22.7% over Rs 3,446.3 crore in the corresponding quarter ended March 31, 2017.

In a meeting held on Saturday, the HDFC Bank's Board of Directors have recommended a dividend of Rs 13/- per equity share of Rs 2/- each (i.e.650 %) out of the net profits for the year ended 31" March, 2018, subject to the approval of the shareholders at the ensuing Annual General Meeting of the Bank.

Also they 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 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 shareholder.

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