HDFC Bank Q4 Profit Jumps 37% on Strong Non-Interest Income

Bengaluru, Karnataka – April 20, 2024: HDFC Bank, a leading private sector lender, reported a 37.1% year-on-year increase in net profit for the quarter ended March 31, 2024, at Rs 16,512 crore. This growth was driven by a significant rise in non-interest income, which more than doubled to Rs 18,166 crore compared to Rs 8,731 crore in the same period last year.

The bank’s net interest income, however, saw a more modest increase of 24.5% to Rs 29,080 crore. The growth in other income is primarily attributed to trading gains and the bank’s stake sale in HDFC Credila, its education finance subsidiary.

HDFC Bank maintained healthy asset quality with Gross NPA (Non-Performing Assets) ratio at 1.24%. The bank also witnessed strong growth in deposits, with a total increase of 26.4% year-on-year. This growth was driven by a significant rise in retail deposits (8.7%).

On the lending side, gross advances increased by 55.4% year-on-year. This growth was fueled by a massive 108.9% jump in retail loans, indicating healthy credit demand. Loans in other segments like commercial and rural banking grew by 24.6%, while corporate and wholesale loans (excluding non-individual loans of HDFC Ltd) saw a more moderate increase of 4.2%.

The bank’s Capital Adequacy Ratio (CAR) remained strong at 18.8%, well above the regulatory requirement of 11.7%.