HDFC Bank- Consistent Compounder | Q4FY21 Financial Highlights | Yadnya Investment Academy

HDFC Bank has released its quarterly update for Q4FY21. To know more about these updates of HDFC in this quarter, read this blog.

Introduction:

HDFC Bank has announced its quarterly update for Q4FY21. In this quarterly update, HDFC Bank has disclosed its business numbers like Advances, Deposit book, Loans, etc. Banks and NBFC are strictly advised to submit their business numbers to Stock Exchanges as per SEBI Regulations.

Advances:

• HDFC Bank is having a loan book of Rs. 11.32 Lakh Cr. as of 31^st March 2021.
• The loan book of the bank has grown by 13.9% YoY from Rs. 9.93 Lakh Cr. to Rs. 11.32 Lakh Cr.
• The same has grown by 4.6% from the previous quarter i.e., Rs. 10.82 Lakh Cr. in Q3FY21.
• If we consider other banks, then the growth of their advanced book lies in single-digit, but HDFC looks aggressive.
• The retail loan book of HDFC bank is up by 7.5% on yearly basis.
• Whereas the wholesale loan book of the bank has grown by a strong 21% YoY. This shows that HDFC bank is still focusing on big loans i.e., targeting big corporates.

Deposits:

• The deposit Book of HDFC Bank stands at Rs. 13.35 Lakh Cr. as of 31^st March 2021
• The YoY growth rate of the Deposit book is 16.3%. The deposit book has grown from Rs. 11.47 Lakh Cr. in Q4FY20 to Rs. 13.35 Lakh Cr. in Q4FY21.
• Deposit of the bank has grown by 5% quarter on quarter from Rs. 12.71 Lakh Cr. in Q3FY21 to Rs. 13.35 Lakh Cr. in this quarter.

CASA Deposit:

• CASA Deposit of the HDFC bank has grown by 27% YoY from Rs. 4.8 Lakh Cr. to Rs. 6.15 Lakh Cr. in Q4FY21.
• HDFC bank provides a minimal interest rate of 3.5% for Savings Account. And due to these low interest rates, it may increase the Net Interest Margin of Q4FY21.
• Sequentially, CASA Deposit has grown by 12.5% from Rs. 5.46 Lakh Cr. to Rs. 6.15 Lakh Cr.
• CASA Deposit as a % of the total deposit is at 46% in Q4FY21 while it was 42.2% in Q4FY20 and 43% in Q3FY21.
• In the context of Cheap Deposits, only PSUs have such potential as these banks also offer low-interest rates but the advantage for HDFC Bank is it is aggressive in Corporate Lending while PSU banks are now playing defensive due to NPAs.

A loan from HDFC:

• HDFC Bank has taken a loan of Rs. 7,500 Cr. from its parent company HDFC Ltd.
• HDFC and HDFC Bank are having a good arrangement where on every quarter HDFC provides loans to HDFC Banks and then it is repaid by the bank and is ready acquire to more clients.

Conclusion:

HDFC Bank Limited has announced significant business figures for Q4FY21. Bank has witnessed strong growth in their advance and deposit books. Also, on account of the availability of cheap deposits, HDFC Bank may report a high interest margin this quarter. Looking at these figures and growth, this quarterly result might be a great one for the bank as well as the shareholders of HDFC Bank.