The slowdown in the economy has begun to reflect in earnings potential of banks.
HDFC Bank on Tuesday said its net profit for fourth quarter ended March 31 grew 23.1% at Rs 2,326.50 crore over the same period previous fiscal, slowest in more than a decade.
The earnings threw up no surprises and were slightly below market expectations by Rs 45 crore.
Its total income for the reporting quarter stood at Rs 12,790 crore.
The bank, the third-biggest lender by assets, earned a total income of Rs 49,055 crore in fiscal 2014.
Net profit for the year after effecting 33.6% taxes was Rs 8,478 crore for the full fiscal. Consolidated net profit for the last fiscal rose 27.3% to Rs 8,743.5 crore.
There was a substantial spurt in other 'non-interest' incomes in Q4 at Rs 2,001.14 crore, about 28.8% of net revenues. Compared with the previous fiscal's Q4, that income was up 11% from Rs 1,803.6 crore.
The bank said four components of other income contributed to the rise. These were: fees and commissions (Rs 1,521.20 crore in Q4FY14 vs Rs 1,382.60 crore Q4FY13), forex and derivative revenues (Rs 252.10 crore vs Rs 201.40 crore), revaluation and sale of investments (Rs 33.30 crore vs Rs 64.90 crore) and miscellaneous income including recoveries (Rs 194.80 crore vs Rs 154.70 crore).
For the year, advances were higher by 26.4% (year on year) at Rs 303,000 crore, an increase of 26.4% over March 31, 2013. The domestic loan mix between retail and wholesale was 53:47. Total advances in overseas branches as of March 31, 2014 doubled to 8% of the total advances as against 4% as of March 31, 2013.
The bank's capital adequacy ratio (CAR) as on March 31, 2014, stood at 16.1% as against a regulatory requirement of 9%. Of this, Tier-I CAR was 11.8%.
Net interest income, interest earned and paid, was up 15.3% to Rs 4,953 crore in Q4. Asset quality was stable with non-performing loans, as a percentage of total assets, at 0.3%. Net interest margin for the quarter stood at 4.4%.
The stock ended with a gain of 1.55% on the National Stock Exchange at Rs 727.55.
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