- 22 Apr 2024
- ICICIdirect
HDFC BANK Q4 RESULTS 2024: NET PROFIT RISES 39.9% YOY, DIVIDEND DECLARED
HDFCBANK - 1716 Change: -17.00 (-0.98 %)
HDFC Bank reported its March quarter numbers on 20th April. The results are in line with market expectations. Let us look at HDFC Bank's Q4FY24 quarterly numbers in detail.
About HDFC Bank
The company needs no introduction. HDFC Bank and HDFC Limited merger is completed, which makes it one of the biggest banks in the world. HDFC Bank is one of the largest private sector banks in India. It was established in 1994. HDFC Bank provides a wide range of banking and financial services to individuals, businesses, and corporates.
Crucial Parameters
- PE Ratio: 17.3
- 52-week high: Rs 1,757.80
- Market Cap: 11,63,314.93 crore
- EPS(TTM): 23.2
Share Price Movement
On Friday, HDFC Bank's share price closed at Rs 1,534.205 on the NSE, up 2.64%. In the last six months, HDFC Bank has given only 1.87%, and in one one-year, the returns are negative at 8.38%. In the 5-year time frame, it has delivered 34.52% returns, which is much lower than the 5-year historical returns and benchmark Nifty50.
How has HDFC Bank performed in Q4FY24?
Below are key numbers related to HDFC Bank's results for the March 2024 quarter:
Revenue: HDFC Bank reported consolidated revenue of Rs 80,700 crore for Q4FY24, a growth of 133.6%%. In the year-ago period, the bank reported a net revenue of Rs 34,500 crore. In the previous quarter, the net revenue reported was Rs 71,770 crore, an excellent growth of 12.45%.
Net Interest Income (NII): It measures the difference between the interest income generated from loans, investments, and other interest-earning assets and the interest expenses incurred on deposits, borrowings, and other interest-bearing liabilities. It reflects the bank's ability to effectively manage its interest rate risk and generate profits from its interest-related operations.
The NII for HDFC Bank for the March quarter was Rs 29,080 crore, a jump of 24.5%. In the year-ago period, the net interest income was Rs 18,170 crore. In the December quarter, the NII was Rs 28,470 crore. The core net interest margin was 3.44% on total assets and 3.63% based on interest-earning assets.
Profits: The consolidated profit reported by the bank was Rs 17,620 crore for Q4FY24, a jump of 39.9% from the year-ago period. Earning Per Share (EPS) for the March quarter was Rs 23.2 (up from Rs 22.2 in the December quarter), and book value per share was Rs 600.8 (from Rs 576 in the previous quarter).
Other income: It includes the non-interest income, and it was Rs 18,170 crore. In the year-ago period, it was Rs 8,700 crore. Other income has four components - Fees and commissions stood at Rs 7,990 crore. Foreign exchange and derivative revenue were reported at Rs 1,140 crore, net trading and mark-to-market gains of Rs 7,950 crore, and miscellaneous income of Rs 1,440 crore.
Deposits: HDFC bank reported a total deposit of Rs 23.80 lakh crore, a growth of 26.4% year on year. CASA deposits increased by 8.7%, with savings account deposits at Rs 5.98 lakh crore and current account deposits at Rs 3.1 lakh crore.
The Time deposits saw exceptional growth numbers. It grew to Rs 14.71 lakh crore with a 40.4% increase. The overall CASA deposits comprised 38.2% of total deposits at the end of the March quarter.
Gross Advances increased by 62.4% at Rs 25.08 lakh crore. Domestic retail loans grew by 108.9%, commercial and rural bank loans increased by 26.4%, while overseas advances constituted 4.2% of total advances.
Asset Quality: The HDFC Bank reported Gross non-performing assets (NPAs) at 1.24% of gross advances for Q4FY24, as against 1.26% in Q3FY24 and 1.12% in Q4FY23. The Net NPA was at 0.33% of net advances at the end of the March quarter.
Dividend: The Board of Directors has recommended a dividend of Rs19.50 per equity share of Re. 1/- each fully paid up (i.e. 1,950 %) out of the net profits for the year ended March 31, 2024. The record date for determining the eligibility of members entitled to receive a dividend on equity shares is Friday, May 10, 2024.
How have HDFC Bank subsidiaries performed in Q4FY24?
HDFC Securities Limited (HSL): It is amongst the leading retail broking firms in India. At the end of the March quarter, the bank held a 95.1% stake in HSL. For the quarter ended March, HSL's total revenue was at Rs 860 crore, as against Rs 490 crore in the year-ago period. Profit after tax for the quarter was Rs 320 crore, as against Rs 190 crore for the quarter ended December 31, 2022.
HDB Financial Services Limited (HDBFSL): It is a non-deposit-taking non-banking finance company (NBFC) offering a wide range of loans and asset finance products to different customer segments. As of March 31, 2024, the Bank held a 94.6% stake in HDBFSL. For Q4FY24, HDBFSL's net revenue was at Rs 2,290 crore as against Rs 2,260 crore for the quarter ended March 2024. Profit after tax for the quarter ended March, was Rs 660 crore compared to Rs 550 crore for the quarter ended March 31, 2023, a growth of 20%.