HDFC Bank beats Street; Q4 net rises 23%

Total income for the quarter ended March 31, 2019, stood at Rs 31,204.5 crore, up by 22.1 per cent from Rs 25,549.7 crore for the quarter ended on March 31, 2018.

Private lender HDFC Bank on Saturday reported a 23 per cent jump in its net profit to Rs 5,885.12 crore for the quarter ended March 2019 on a healthy growth in its net interest income.

The bank had registered a net profit of Rs 4,799.28 crore in the January-March quarter of 2017-18.

Total income for the quarter ended March 31, 2019, stood at Rs 31,204.5 crore, up by 22.1 per cent from Rs 25,549.7 cro

e for the quarter ended on March 31, 2018, the bank said in a regulatory filing.

Net interest income grew by 22.8 per cent to Rs 13,089.5 crore in the last quarter of FY2018-19 from Rs 10,657.7 crore in the year-ago quarter driven by average asset growth of 19.8 per cent and a core net interest margin of 4.4 per cent, the bank said.

On asset front, bank's gross non-performing assets (NPAs) were at 1.36 per cent of gross advances as on March 31, 2019, as against 1.30 per cent as on March 31, 2018.

Coverage ratio as on March 31, 2019 was 71  per cent.

Net non-performing assets or bad loans were at 0.30 per cent of net advances against 0.40 per cent.

The lender said that it held floating provisions of Rs 1,451 crore as on March 31, 2019.

"We are also pleased to inform that the Board of Directors have recommended a dividend of Rs 15 per equity share for the year ended 31st March, 2019, subject to the approval of the shareholders at the ensuing Annual General Meeting of the bank", it said.

The board also approved raising up to Rs 50,000 crore through private placement of debt instruments in the next 12 months.

The Board of Directors have 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 Rs 50,000 crore in the period of next 12 months through private placement mode, subject to the approval of the shareholders at the ensuing Annual General Meeting of the Bank and any other regulatory approvals as applicable, it said further.

Additionally, the bank also informed due to minimal number of GDRs outstanding and the low trading volume of the GDRs, the Board has decided for termination of the GDR programme and delisting of 22 GDRs (representing 11 underlying equity shares of the Bank) from the Luxembourg Stock Exchange (LSE).

"The bank shall take necessary steps in this regard," it said.

Photograph: Shailesh Andrade/Reuters