HDFC Bank Ltd, India’s largest private sector lender, reported a 19.8% YoY rise in its standalone net profit to Rs 12,047.5 crore for the fourth quarter ending March 31, 2023, from Rs 10,055.2 crore in the same quarter last year.

Net revenue grew by 21.0%, reaching Rs 32,083.0 crore, up from Rs 26,509.8 crore in the same quarter last year. HDFC Bank’s net interest income (NII) grew by 23.7% YoY to Rs 23,351.8 crore, while the core net interest margin stood at 4.1% on total assets and 4.3% based on interest-earning assets. Other income rose 27.2% YoY to Rs 8,731.2 crore, further aiding the bank’s bottom line in the quarter.

HDFC Bank’s pre-provision operating profit (PPoP) increased 14.4% YoY to Rs 18,621 crore. At the same time, provisions and contingencies for the quarter were Rs 2,685.4 crore, compared to Rs 3,312.4 crore in the corresponding quarter of the previous year. The bank’s total credit cost ratio was 0.67%, compared to 0.96% in the same period last year.

The lender’s asset quality remained broadly stable. The gross non-performing assets (GNPA) ratio was 1.12% as of March-end, compared to 1.23% in the previous quarter and 1.17% in the same period last year. The net non-performing assets (NNPA) ratio was 0.27%, compared to 0.33% in the previous quarter and 0.32% in the same period last year.

HDFC Bank’s total deposits grew 20.8% to Rs 18.83 lakh crore as of March 31, 2023, with Current Account and Savings Account (CASA) deposits growing by 11.3% to Rs 8.35 lakh crore. The bank’s total advances rose 16.9% to Rs 16 lakh crore as of March 31, 2023. Domestic retail loans grew by 21%, commercial and rural banking loans by 30%, and corporate and other wholesale loans by 12.6%. Overseas advances constituted 2.6% of the total advances.

The capital adequacy ratio (CAR) improved significantly to 19.26% as of March 31, 2023, compared to 18.90% in the same period last year and 17.66% in the previous quarter.

However, the performance of HDFC Securities, the bank’s brokerage arm, was impacted by volatile markets during the quarter. The total revenue was Rs 486 crore, compared to Rs 510 crore in the same period last year. Profit after tax (PAT) decreased to Rs 194 crore from Rs 236 crore in the same period the previous year.

On the other hand, HDB Financial Services, a non-deposit taking non-banking finance arm of HDFC Bank, reported a 5.9% YoY growth in net revenue to Rs 2,262.5 crore, while PAT increased by 28% to Rs 545.5 crore.