Board approves Rs 50,000 crore capital raising through bonds over next 12 months
The country’s largest private sector lender HDFC Bank posted a 22.6 per cent increase in its net profit to Rs 5,885.1 crore for the fourth quarter of 2018-19 on the back of robust revenue and stable asset quality.
Its net profit stood at Rs 4,799.28 crore in the quarter ended March 31, 2018.
The bank’s total income for the January to March 2019 quarter grew by 22.1 per cent to Rs 31,204.5 crore from Rs 25,549.7 crore a year ago.
Net revenue (net interest income plus other income) increased by 20.7 per cent to Rs 17,960.7 crore for the quarter ended March 31, 2019, from Rs 14,886.3 crore in the corresponding quarter of 2017-18.
Core net interest margin was a robust 4.4 per cent for the fourth quarter of the fiscal. Similarly, the lender reported a 22.8 per cent increase in the net interest income for the quarter at Rs 13,089.5 crore.
HDFC Bank’s asset quality also remained stable. Gross non-performing assets were at 1.36 per cent of gross advances as on March 31, 2019, as against 1.38 per cent as on December 31, 2018 and 1.30 per cent as on March 31, 2018.
Net non-performing assets were at 0.4 per cent of net advances as on March 31, 2019.
Provisions and contingencies for the quarter ended March 31, 2019, however, rose to Rs 1,889.2 crore as against Rs 1,541.1 crore in the same period a year ago.
The bank’s net profit for 2018-19 rose by 20.5 per cent to Rs 21,078.1 crore. As of March 31, 2019, its total balance sheet size was Rs 1,244,541 crore, as against Rs 1,1,063,934 crore as of March 31, 2018.
The bank’s Board of Directors, which met on Saturday, also recommended a dividend of Rs 15 per equity share of Rs 2 for the year ended March 31, 2019, as against Rs 13 per equity share of Rs 2 in 2017-18.
The board also approved the 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) up to a total amount of up to Rs 50,000 crore over the next 12 months through private placement.