HDFC Bank reported a 22.8% year-on-year increase in net
profit to Rs 10,055.2 crore for the quarter ended March 31, 2022. HDFC Bank has
posted a net profit of Rs 8,186.5 crore in the year-ago period. Net profit for
the year ended March 31, 2022, was Rs 36,961.3 crore, up by 18.8% over the year
ended March 31, 2021.

The rise is primarily due to a reduction in provision by
almost Rs 1,300 crore. Provision for the fourth quarter of the financial year
2022 was at Rs 3312 crore as against Rs 4,692 crore in the January-March period
of 2020-21. Total provisions consisted of specific loan loss provisions of Rs
1,778.2 crore and general and other provisions of Rs 1,534.2 crore.

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The net interest income (NII) rose 10.2% to Rs 18,872.7
crore in the January-March quarter, following a 20.8% growth in advances.

HDFC Bank’s net revenues, net interest income plus other
income, rose by 7.3% to Rs 26,509.8 crore for the reported quarter from Rs 24,714.1
crore for the quarter ended March 31, 2021.

Advances grew 20.8% on the back of growth coming across
products and segments. Retail advances grew by 15.2%, commercial and rural
banking loan products grew by 30.4% while wholesale loans registered a growth
of 17.4%. The core net interest margin was at 4.0% on total assets and 4.2%
based on interest-earning assets.

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Retail loans constitute 39% of the bank’s total, down
from 47% last year. Personal loans are 10% of the total loan book.

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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“We continued to add new liability relationships at
a robust pace of 2.4 million during the quarter. Liquidity coverage ratio was
healthy at 112%, well above the regulatory requirement,” noted HDFC Bank
in an official statement.

The bank opened 563 new branches and added 7,167
employees during the quarter. During the financial year 2021-22, it added 734
branches and 21,486 employees. “This, and other investments made during
the year, will position the bank to capitalise on the growth opportunity,”
it said.

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Operating expenses for the January-March quarter were Rs
10,152.8 crore, an increase of 10.6% against Rs 9,181.3 crore in the
corresponding quarter of the previous year. The cost-to-income ratio for the
quarter stood at 38.3%.

HDFC Bank’s total balance sheet size as of March 31,
2022, grew 18.4% to Rs 2,068,535 crore as against Rs 1,746,871 crore as of
March 31, 2022. CASA deposits grew by 22.0% with savings account deposits at Rs
511,739 crore and current account deposits at Rs 239,311 crore.