hdfc: HDFC Bank sees 23% rise in net profit in Q4

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MUMBAI: HDFC Bank has reported a net profit of Rs 10,055 crore for the quarter ended March 2022, an increase of nearly 23% over Rs 8,186 crore for the same period in FY21. Its net profit for the year was Rs 36,916 crore, an increase of 18% over Rs 31,165 crore in FY21.
The bank’s profits grew due to a 20.8% increase in its advances to Rs 13.7 crore. Its deposits grew 16.8% to Rs 15.59 lakh crore. The expansion of the balance sheet takes place ahead of a proposed reverse merger with its parent, HDFC. The boards of the bank and its parent approved the merger earlier this month.
Addressing analysts after the results, Srinivasan Vaidyanathan, chief financial officer at HDFC Bank, said the bank’s wholesale loans grew faster than retail loans, which were earlier the mainstay of the bank.
“This has reversed. Retail is now 45% of our advances and wholesale is 55%,” said Vaidyanathan. He added that the shift in loans from unsecured retail to high-rated corporates resulted in a dip in net interest margin from 4.2% in FY21 to 4% in FY22.
However, when adjusted for credit costs (defaults), the net interest margin improved to 3.3% from 3.1% for FY21.



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