HDFC Bank‘s shares fell 1% in the morning trade after the lender reported a mixed set of earnings for the fourth quarter of the financial year 2023-24.
The private sector bank posted a standalone net profit of ₹16,512 crore in Q4FY24, a slight increase from ₹16,373 crore in the previous December quarter. However, due to the merger with its parent company, Housing Development Finance Corporation (HDFC), in July, the results are not comparable on a year-over-year basis.
HDFC Bank’s asset quality remained steady, with the gross non-performing assets (NPA) ratio standing at 1.24% at the end of March, a marginal decrease from 1.26% in the preceding quarter. Similarly, the net NPA ratio saw a slight uptick to 0.33% from 0.31% in the previous quarter.
The bank’s core net interest income rose to ₹29,080 crore for the reported quarter, and other income increased to ₹18,170 crore. HDFC Bank reported a core net interest margin (NIM) of 3.44% on total assets.
Provisions and contingencies for the quarter amounted to ₹13,500 crore, including floating provisions of ₹10,900 crore. For the full financial year 2023-24, the bank’s total profit stood at ₹64,060 crore.
The board of directors recommended a dividend of ₹19.5 per equity share of ₹1 for the fiscal year ending March 31, 2024. As of 10:00 am, HDFC Bank’s shares were trading 0.86% lower at ₹1,518.20 on the National Stock Exchange (NSE.