HDFC Bank Board Approves FY22 Dividend; Investors Need To Know This

HDFC Bank‘s board of directors has recommended a dividend of Rs 15.50 per equity share for the financial year 2021-22. The lender has fixed May 13 as the record date to determine the eligibility of members entitled to receive a dividend on equity shares.

“The board of directors, at its meeting held…(on April 23), has recommended a dividend of Rs 15.50 per equity share of Re 1 each fully paid-up (i.e.1,550 per cent) out of the net profits for the year ended March 31, 2022,” HDFC Bank said in a BSE filing on Saturday.

However, it is subject to the approval of the shareholders at the ensuing annual general meeting of the bank.

“Dividend, if approved by the shareholders of the bank, will be paid after the annual general meeting (AGM) to those shareholders, whose names appear in the bank’s register of members/ register of beneficial owners maintained by the depositories viz., National Securities Depository Limited and Central Depository Services (India) Ltd as at the close of business hours on Friday, May 13, 2022,” it added.

The country’s largest private sector lender’s standalone net profit in the March 2022 quarter stood at Rs 10,055.18 crore, a jump of 22.82 per cent as compared with Rs 8,186.51 crore a year ago. Its total income during January-March 2022 rose eight per cent to Rs 41,085.78 crore, against Rs 38,017.50 in the year-ago period.

HDFC Bank’s net interest income (NII), interest earned minus interest expended, during January-March 2022 grew 10.2 per cent to Rs 18,872.7 crore, compared with Rs 17,120.2 crore a year ago, according to a BSE filing.

The bank’s total deposits as on March 31, 2022, stood at Rs 15,59,217 crore, a jump of 16.8 per cent as compared with the previous year. CASA (current account-saving account) deposits rose 22 per cent with savings account deposits at Rs 5,11,739 crore and current account deposits at Rs 2,39,311 crore.

On the asset quality front, the bank on Saturday reported gross non-performing assets (GNPA) at 1.17 per cent of gross advances as on March 31, 2022, compared with 1.31 per cent a year ago. The GNPAs during the December 2021 quarter stood at 1.26 per cent. In absolute terms, the bank’s gross non-performing assets GNPAs increased to Rs 16,140.96 crore as compared with Rs 15,086 crore a year ago.

Its net NPAs, or bad loans, stood at 0.32 per cent of net advances at the end of the March 2022 quarter as compared with 0.40 per cent a year ago. In absolute terms, it stood at Rs 4,407.68 crore against Rs 4,554.82 crore a year ago. “Liquidity coverage ratio was healthy at 112 per cent, well above the regulatory requirement,” HDFC Bank said in a statement.

The bank’s total advances increased 20.8 per cent year-on-year to Rs 13,68,821 crore the January-March 2022 period.

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