HDFC Bank share tanks over 3% after reporting Q4 results

HDFC Bank shares dropped 3.35% to Rs 1415.75 on Monday in response to the bank’s Q4 March 2022 results. The private lender’s net profit increased 22.83% to Rs 10,055.18 crore in Q4 March 2022 over Q4 March 2021, owing to an 8.07% increase in total income to Rs 41,085.78 crore.

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In the fourth quarter of 2022, the bank’s profit before tax (PBT) increased by 20.35% year on year to Rs 13,044.66 crore. In Q4 March 2022, the bank’s provisions and contingencies (excluding tax provisions) decreased by 29.43% to Rs 3,312.35 crore from Q4 March 2021.

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The Bank held floating provisions of Rs 1,451 crore and contingent provisions of Rs 9,685 crore as of March 31, 2022. Total provisions (comprising specific, floating, contingent and general provisions) were 182 per cent of the gross non-performing loans as of March 31, 2022.

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Gross non-performing assets (NPAs) stood at 1.1% of gross advances as of March 31, 2022, as compared to 1.26% as of December 31, 2021, and 1.32% as of March 31, 2021. Net non-performing assets were at 0.32% of net advances for the quarter ended March 31, 2022.

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In the year ended March 2022, HDFC Bank’s net profit increased 18.78% to Rs 36,961.33 crore, on a 7.67% growth in total income to Rs 157,263.01 crore, compared to the year ended March 2021.

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HDFC Bank’s board approved issuing perpetual debt instruments (part of additional tier I capital), tier II capital bonds, and long term bonds (financing infrastructure and affordable housing) in the private placement mode up to a total amount of Rs 50,000 crore over the next twelve months. The proposal is subject to the bank’s shareholders’ approval as well as any other regulatory approvals that may be required.

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Meanwhile, the bank’s executive board approved Renu Karnad’s re-appointment as a non-executive director (nominee of Housing Development Finance Corporation) for a five-year term beginning September 3, 2022.