HDFC Bank has released its financial results for the quarter and financial year ended March 31, 2019. The standalone results have had a paradigm shift with a total income rise of 22.1% from Rs 25,549.7 crore to Rs 31,204.5 crore from the quarter ended March 31, 2018.
Net revenues (net interest income plus other income) rose 20.7% to Rs 17,960.7 crore for the quarter ended March 31, 2019 from Rs 14,886.3 crore in the previous quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended March 31, 2019 grew by 22.8% to Rs 13,089.5 crore, from Rs 10,657.7
crore for the quarter ended March 31, 2018, with an average asset growth of 19.8% and a core net interest margin for the quarter of 4.4%.
The income i.e the non-interest revenue at Rs 4,871.2 crore was 27.1% of the net revenues for the quarter ended March 31, 2019 and grew by 15.2% over Rs 4,228.6 crore in the corresponding quarter ended March 31, 2018. The four components of other income for the quarter ended March 31, 2019 were fees & commissions of Rs 3,692.1 crore from Rs 3,329.7 crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of Rs 403.3 crore (` 416.4 crore for the corresponding quarter of the previous year), gain on revaluation / sale of investments of Rs 228.9 crore (loss of Rs 22.0 crore in the corresponding quarter of the previous year) and miscellaneous income, including recoveries and dividend, of Rs 546.9 crore (Rs 504.5 crore for the corresponding quarter of the previous year).
Profit and Loss Account: Year ended March 31, 2019.
For the year ended March 31, 2019, the Bank earned a total income of Rs 116,597.9 crore. Net revenues (net interest income plus other income) for the year ended March 31, 2019 were Rs 65,869.1 crore, up by 19.1% over Rs 55,315.2 crore for the year ended March 31, 2018.
The core net interest margin for the year ended March 31, 2019 was 4.3%. The major cost to income ratio for the year ended March 31, 2019 was at 39.9%, as against 41.7% for the year ended March 31, 2018. The Bank’s net profit for the year ended March 31, 2019 was Rs 21,078.1 crore, up 20.5% over the year ended March 31, 2018.
Balance Sheet: As of March 31, 2019
Total balance sheet size as of March 31, 2019 was Rs 1,244,541 crore as against Rs 1,063,934 crore as of March 31, 2018. Total deposits as of March 31, 2019 were Rs 923,141 crore, an increase of 17.0% over March 31, 2018. CASA deposits grew by 14.0% with savings account deposits at Rs 248,700 crore and current account deposits at Rs 142,498 crore.
Time deposits were at Rs 531,943 crore, an increase of 19.4% over the previous year, resulting in CASA deposits comprising 42.4% of total deposits as of March 31, 2019. The Bank’s continuing focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 118%, well above the regulatory requirement.
Capital Adequacy:
The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines stood at 17.1% as on March 31, 2019 (14.8% as on March 31, 2018) as against a regulatory requirement of 11.025% which includes Capital Conservation Buffer of 1.875%, and an additional requirement of 0.15% on account of the Bank being identified as a Domestic Systemically Important Bank (D-SIB).
DIVIDEND
The Board of Directors said a dividend of ₹ 15 per equity share of ₹ 2 for the year ended March 31, 2019 would be an idea fit, against ₹ 13 per equity share of ₹ 2 for the previous year. This would be subject to approval by the shareholders at the next annual general meeting.
ASSET QUALITY
Gross non-performing assets were down at 1.36% of gross advances as on March 31, 2019, as against 1.38% as on December 31, 2018 and 1.30% as on March 31, 2018. Coverage ratio as on March 31, 2019 was 71%. Net non-performing assets were at 0.4% of net advances as on March 31, 2019.
SUBSIDIARIES
The financial results of the Bank’s subsidiary companies have been prepared in accordance with notified Indian Accounting Standards (‘Ind-AS’) with effect from April 1, 2018 (April 1, 2017 being the transition date). As per the financial results, the comparative reporting period have also been prepared in accordance therewith.
