HDFC Bank posts strong quarter with stable asset quality

Country’s largest private sector bank reported strong FY18 numbers on Saturday. The revenues for the bank grew strongly coupled with robust advances and asset quality.

The total revenue for the quarter rose by 17.3 per cent yoy to Rs.10,657 crore in Q4FY18 as against Rs. 9,051 crore in the previous year's corresponding quarter. The total interest income for the bank rose by 17.7 per cent yoy to Rs. 21,321 crore in Q4FY18 as against Rs. 18,114 crore in Q4FY17.

The asset quality for the quarter remained unchanged for the quarter as GNPA’s as a percentage of advances stood at 1.30 per cent for the quarter as against 1.29 per cent in Q4FY17. The total GNPA’s for the quarter rose by 46 per cent yoy and 3.4 per cent qoq to Rs. 8,606 crore in Q4FY18 as against Rs. 8,234 crore in previous quarter.

The provisions also rose by 22.7 per cent yoy and 14 per cent qoq to Rs. 1,541 crore in Q4FY18 as against Rs. 1,256 crore in Q4FY17 and Rs. 1,351 in previous quarter. However, net profit for the quarter rose by 20.4 per cent yoy to Rs. 4,799 crore in Q4FY18 as against Rs. 3,990 crore in Q4FY17.

Further, the advances also remained strong at 19 per cent yoy growth to Rs. 6,58,333 crore in FY18 as against Rs. 5,54,568 crore. The capital adequacy also deteriorated to 14.8 per cent in Q4FY18 as against 15.5 per cent in Q3FY18.

On full year basis, NII grew by 21 per cent yoy to Rs. 40,095 crore, while provisions remained elevated at Rs. 5,927 crore, yoy increase of 65 per cent. While the bottom-line remained strong at 21 per cent yoy to Rs. 17,486 crore in Q4FY18.

The stock is currently trading at negative at Rs. 1,944 per share down by 0.86 per cent at 10:04 hours on Monday.