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HDFC Bank offers bonanza for shareholders: Key takeaways

HDFC Bank, Indias largest lender in terms of market capitalisation, reported record profit for March quarter on Saturday, which was in line with market expectations.

The bank posted 20.27 per cent year-on-year growth in net profit on higher net interest income. Net profit jumped to Rs 4,799.28 crore from Rs 3,990.09 crore reported for the same period last year.

Net interest income (NII) rose 17.70 per cent YoY to Rs 10,657.71 crore from Rs 9,055.10 crore a year earlier.

Here are the key takeaways from the banks earnings:

Bonanza to shareholders
The banks board recommended a dividend of Rs 13 per equity share of face value of Rs 2 each for the year ended March, 2018.

Total advances
Total advances stood at Rs 6.58 lakh crore as of March 31, 2018, which grew 18.70 per cent from the same period last year. “Both retail and wholesale segments of the banks loan portfolio contributed this growth. The loan mix stood at 57:43 between retail and wholesale. As per regulatory [Basel II] segment classification, retail loans grew 27.4 per cent and wholesale loans 9.4 per cent,” HDFC Bank said in a release.

Fund raising plans
The banks board has approved issue of perpetual debt instruments (part of additional tier I capital), tier II capital bonds and long-term bonds (financing of infrastructure and affordable housing) of up to Rs 50,000 crore over next 12 months through private placement, subject to shareholder approval.

Stable NPAs
Asset quality remained almost stable, as the percentage of gross non-performing assets (NPA) came in at 1.30 per cent against 1.29 per cent reported for the sequential quarter. Percentage of net NPAs as of March-end stood at 0.40 per cent compared with 0.44 per cent at the end of December.

Balance Sheet: Total balance sheet size as of March 31, 2018 came at Rs 10.64 lakh crore as against Rs 8.64 lakh crore as of March 31, 2017.
Provisions: Provisions and contingencies increased 22.13 per cent to Rs 1,541.10 crore during the quarter under review. The figure stood at Rs 1,261.80 in the same quarter last year.

Ahead of its quarterly numbers, shares of HDFC Bank on Friday settled at Rs 1960.95, up 1 per cent, against the previous close of Rs 1,941.95.

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