HDFC Bank says credit environment in economy remains healthy, asset quality stable

HDFC Bank says credit environment in economy remains healthy, asset quality stable

The country’s largest private sector lender, HDFC Bank Ltd on April 20 said the credit environment in the Indian economy remains healthy and the bank’s credit performance across all segments continues to remain healthy.

Total advances of the bank, during the fiscal year 204, rose to Rs 25 lakh crores, showing a jump of 55.4 percent from the year-ago period. This is the first full-year earnings results of the bank post the HDFC-HDFC Bank merger.

Of the total loan book, domestic retail loans grew by 108.9 percent while commercial and rural banking loans grew by 24.6 percent, the bank said. Also, corporate and wholesale loans grew by 4.2 percent.

Further, the bank’s gross NPAs (non-performing assets) showed an improvement at 1.24 percent on the previous quarter from 1.26 percent, the bank said. Net NPAs stood at 0.33 percent.

During the quarter, the bank enhanced its floating provisions as a countercyclical buffer for making the balance sheet more resilient, the bank said, adding that these also qualify as tier-2 capital within regulatory limits. The total credit cost ratio declined to 0.42 percent compared with 0.67 percent for the quarter ending March 31, 2023, the bank said.

The bank’s year-on-year financial results are not comparable due to the merger with the parent entity HDFC Ltd during the year.

The net interest income (NII) of Rs 29,007 crore jumped from Rs 28,470 crore reported in the previous quarter. The NII is slightly lower as against the market estimates of Rs 29,172 crore.

The net revenue of the lender grew to Rs 47,240 crore including transaction gains of Rs 7340 crore from the stake sale in subsidiary HDFC Credila Financial Services during the quarter.