India’s largest private sector bank in terms of assets, HDFC Bank, has reported a fourth quarter net profit of Rs.2,861.58 crore, which is 27% higher than the Rs.2,256.68 crore reported in the same period of last year. Following the strong financial performance, the bank’s board has declared a final dividend of Rs.17.50 per share.
For the quarter ended on 31 March 2019, the bank reported that its total revenue from operations increased to Rs.11,580.05 crore compared to Rs.9,317.02 crore reported in the fourth quarter of the previous year. The substantial profit growth can be attributed to the bank’s net interest income, which increased 19% to Rs.3,161 crore as against Rs.2,650 crore in the same period of last year.
As of 31 March 2019, the bank’s non-performing assets totaled Rs.4,777 crore according to the data released by National Housing Bank norms. This represents about 1.18% of the bank’s total loan portfolio. In March 2018, the bank’s non-performing assets were 1.22% of its loan portfolio.
The bank also reported a 13.8% growth in its loans for this quarter. Its net interest margin during the quarter was 3.3% as against 3.5% in the same quarter of the prior year. The individual loan book of HDFC Bank witnessed a 17% growth whereas the total loan book of the bank increased by 15%.
HDFC Bank also released its earnings report for the full fiscal year along with its fourth quarter results. For the fiscal year 2019, the bank has reported total revenues of Rs.43,348.04 crore, compared to Rs.40,689.22 crore in the previous year. Its net interest income for this one-year period stood at Rs.11,403 crore, as against Rs.9,635 crore a year ago.