Its net profit increased 9.1% to ₹19,221 crore from ₹17,616 crore in the year-ago period. It was also above Street estimates of ₹19,024.8 crore.
The lender’s net interest income (NII) came in at ₹33,281.5 crore for the fourth quarter compared to the CNBC-TV18 poll of ₹33,738 crore. It was 3.8% more than the previous year’s ₹32,066 crore.
HDFC Bank’s asset quality improved in the fourth quarter. Its net non-performing assets (NPA) contracted to 0.38% from 0.42% in the previous quarter. Its net NPA was at ₹11,169.5 crore compared to ₹11,981.8 crore in the previous quarter.
Its gross NPA declined to 1.15% from 1.24% sequentially. It fell to ₹34,061.2 crore in the fourth quarter from ₹35,179 crore in the previous quarter.
The lender’s provisions were at ₹2,609.6 crore compared to ₹2,837.9 crore in the previous quarter and ₹3,193 crore in the year-ago period.
HDFC Bank’s board has also recommended a final dividend of ₹13 per share.
Sameer Sawant, Research Analyst at Mirae Asset Sharekhan, said, “HDFC Bank earnings on the bottom line front, it was in line with our expectations, with a marginal beat of about 0.8%. NII was slightly below expectations, but that was partly offset by lower provisions. So overall profitability was largely in line. Asset quality performance was clearly positive. We were expecting around 1.2% GNPA, but it has come down to 1.15%. Also, the fresh slippage ratio has fallen sharply to 0.2% compared to 0.7% in the previous quarter, which is a positive.”
“HDFC Bank had already disclosed the CD ratio number falling in this quarter, so the Street would have largely factored this in. The key will be management commentary on growth for FY27. We have seen both banks – ICICI Bank and HDFC Bank, showing stronger growth in retail and MSME segments compared to overall industry growth. So commentary on overall growth and on MSME stress—especially in the unsecured segment—given the impact of macro factors, will be important to watch,” he added.
Shares of HDFC Bank ended the previous session 0.6% up at ₹800 apiece. The stock has declined 5% in the past month and is down 19.3% this year, so far.
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