HDFC Bank Limited on Friday proved market estimates wrong and reported a jump of 18.25% in its net profit for the fourth quarter that ended in March. The net profit increased to Rs 3,990.09 crore compared to Rs 3,374.22 crore last year.
The bank attributed this rise to net interest and other income as well as gross non-performing assets, reported Mint. The net interest income, which the bank earns from loans, surged 21.29% to Rs 9,055.1 crore in the this quarter from Rs 7,453.34 crore a year ago. The bank’s other income also jumped 20.25% to Rs 3,446.26 crore. Last year, the same stood at Rs 2,865.86 crore. HDFC’s gross NPAs rose by 12.48% to Rs 5,885.66 from Rs 5,232.27 crore in the last quarter.
However, provisions and contingencies also increased by 76.28% to Rs 1,261.80 crore from Rs 715.78 crore in the last quarter and thus limited the growth trajectory, according to Moneycontrol. “The specific loan loss provisions for March quarter included provisions on accounts that would have turned non-performing in previous quarter, but were classified as NPA during the quarter, in line with additional 60/90 days dispensation provided by the RBI,” said the bank in a regulatory filing.
The total balance sheet on March 31 stood at Rs 8,63,840 crore as against Rs 7,40,796 crore last year. The country’s second largest private sector lender also recommended a dividend of Rs 11 per equity share of Rs 2 for the financial year that ended on March 31, against Rs 9.50 per equity share of Rs 2 last year. The quarterly report sent the bank’s shares soaring on the Bombay Stock Exchange. At 2.55 pm, it had gained 2.14% and was trading at Rs 1,493.50.