April 16, 2022
admin
The Board of Directors of HDFC Bank Limited approved the Bank’s results
for the quarter and year ended March 31, 2022, at its meeting held in Mumbai on
Saturday, April 16, 2022.
The bank has earned EPS of Rs. 68.30 for the year on consolidated basis and Rs. 18.70 for Q4.Based on overall performance of the bank, the Chanakya expects strong rerating for HDFC Bank scrip in the coming months and Chanakya increases its target price to Rs. 2452 in the coming months.
Detailed results are given below for your study.
The Bank’s net revenues (net interest income plus other income) increased by 7.3% to Rs
26,509.8 crore for the quarter ended March 31, 2022 from Rs 24,714.1 crore for the quarter
ended March 31, 2021. Net Revenues, excluding trading income, grew by 10.4% to Rs
26,550.2 crore for the quarter ended March 31, 2022 from Rs 24,059.0 crore for the quarter
ended March 31, 2021.
Net interest income (interest earned less interest expended) for the quarter ended March
31, 2022 grew by 10.2% to Rs 18,872.7 crore from Rs 17,120.2 crore for the quarter ended
March 31, 2021. Advances were up 20.8%, with the growth coming across products and
segments. Core net interest margin was at 4.0% on total assets, and 4.2% based on
interest earning assets. Liquidity coverage ratio was healthy at 112%, well above
the regulatory requirement.
Other income (non-interest revenue) at Rs 7,637.1 crore was 28.8% of net revenues for
the quarter ended March 31, 2022 as against Rs 7,593.9 crore in the corresponding quarter
of the previous year. The four components of other income for the quarter
ended March 31, 2022 were fees & commissions of Rs 5,630.3 crore (Rs 5,023.3 crore in
the corresponding quarter of the previous year), foreign exchange & derivatives revenue
of Rs 892.5 crore (Rs 879.3 crore in the corresponding quarter of the previous year), loss
on sale / revaluation of investments of Rs 40.3 crore (gain of Rs 655.1 crore in the
corresponding quarter of the previous year) and miscellaneous income, including
recoveries and dividend, of Rs 1,154.7 crore (Rs 1,036.2 crore in the corresponding quarter
of the previous year).
The bank added 563 branches and 7,167 employees during the quarter and 734
branches and 21,486 employees during the year. This, and other investments made
during the year, will position the bank to capitalise on the growth opportunity. Operating
expenses for the quarter ended March 31, 2022 were Rs 10,152.8 crore, an increase of
10.6% over Rs 9,181.3 crore during the corresponding quarter of the previous year. The
cost-to-income ratio for the quarter was at 38.3%.
Pre-provision Operating Profit (PPOP) was at Rs 16,357.0 crore. PPOP, excluding trading
income, grew by 10.2% over the quarter ended March 31, 2021.
Provisions and contingencies for the quarter ended March 31, 2022 were Rs 3,312.4 crore
Profit before tax (PBT) for the quarter ended March 31, 2022 at Rs 13,044.7 crore grew by
20.3% over corresponding quarter of the previous year. After providing Rs 2,989.5 crore
for taxation, the Bank earned a net profit of Rs 10,055.2 crore, an increase of 22.8% over
the quarter ended March 31, 2021.
Total balance sheet size has a growth of 18.4%.
Total deposits as of March 31, 2022 were Rs 1,559,217 crore, an increase of 16.8% over
March 31, 2021. CASA deposits grew by 22.0% with savings account deposits at Rs
511,739 crore and current account deposits at Rs 239,311 crore. Time deposits were at Rs
808,168 crore, an increase of 12.3% over the corresponding quarter of the previous year,
resulting in CASA deposits comprising 48.2% of total deposits as of March 31, 2022.
Total advances as of March 31, 2022 were Rs 1,368,821 crore, an increase of 20.8% over
March 31, 2021. Retail loans grew by 15.2%, commercial and rural banking loans grew
by 30.4% and corporate and other wholesale loans grew by 17.4%. Overseas advances
constituted 3.1% of total advances.
Profit & Loss Account: Year ended March 31, 2022
For the year ended March 31, 2022, the Bank earned a total income of Rs 157,263.0 crore
as against Rs 146,063.1 crore for the year ended March 31, 2021. Net revenues (net
interest income plus other income) for the year ended March 31, 2022 were ₹ 101,519.5
crore, as against ₹ 90,084.5 crore for the year ended March 31, 2021. Net profit for the
year ended March 31, 2022 was ₹ 36,961.3 crore, up 18.8% over the year ended March
31, 2021.
Capital Adequacy:
The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 18.9%
as on March 31, 2022 (18.8% as on March 31, 2021) as against a regulatory requirement
of 11.7%
Network : As of March 31, 2022, the Bank’s distribution network was at 6,342 branches and 18,130
ATMs / Cash Deposit & Withdrawal Machines (CDMs) across 3,188 cities / towns as
against 5,608 branches and 16,087 ATMs / CDMs across 2,902 cities / towns as of March
31, 2021.
