HDFC Bank, the country’s largest private sector lender, on Saturday reported a net profit of Rs 10,055 crore for the quarter ended March 2022, marking a 23% increase from the Rs 8,186.51 crore in during the same period of the previous year. The rise in earnings is due to a sharp drop in provisions for non-performing assets (NPA). Its provisions declined by 29% pa to Rs 3,312 crore from Rs 4,694 crore a year ago.
HDFC Bank’s net interest income or the difference between interest earned on loans and interest spent on deposits increased by 10% to Rs 18,872.74 crore from Rs 17,120 crore in the same quarter l last year.
The bank’s asset quality improved, with its gross non-performing assets as a percentage of total advances rising to 1.17% in the March quarter from 1.26% in the prior quarter. In absolute terms, the gross NPA stood at Rs 16,141 crore from 16,013.55 crore.
Net NPAs came in at 0.32% from 0.37%.
HDFC Bank’s total balance sheet size was Rs 2,068,535 crore in FY 2022 compared to Rs 1,746,871 crore in FY 2021, marking growth of 18.4%, the London-based lender said. Mumbai in a press release.
Total advances as of March 31, 2022 was Rs 1,368,821 crore, up 20.8% from March 31, 2021. Personal loans increased by 15.2%, commercial and rural bank loans increased increased 30.4% and business and other wholesale loans increased 17.4%. hundred. Foreign advances accounted for 3.1 percent of total advances.
As of March 31, 2022, the bank’s distribution network consisted of 6,342 branches and 18,130 ATMs in 3,138 cities. 50% of its branches were in semi-urban and rural areas, HDFC Bank added.
Shares of HDFC Bank closed down 1.9% at Rs 1,464.85 ahead of its earnings announcement on Wednesday.