HDFC Bank plans to open about 500 new branches in this financial year, about 60% of which will come up in semi-urban and rural areas. The bank opened 506 branches in the last financial year, increasing the number of its branches to 4,520 at the end of March 2016. Of the 506 branches opened, 256 branches were located in semi-urban and rural areas while the rest came up in urban areas. HDFC Bank is planning to raise Rs 50,000 crore through bonds over the next one year to fund its business expansion.
The move is in line with industry trends as well – ICICI, Axis and Yes Bank also keen on opening more branches.
The bank has also reported a 20.2% jump in net profit for the fourth quarter of last fiscal at Rs 3,374.2 crore, largely led by a sizeable increase in its core net interest income (NII). While its non-interest income grew by 11.8% to reach Rs 2,865.9 crore, its NII registered a 24% growth to reach Rs 7,453.3 crore.
The bank’s gross non-performing assets (NPAs) formed 0.94% of its gross advances while its net non-performing assets stood at 0.3% of its net advances as on March 31, 2016. Its total restructured loans formed 0.1% of its gross advances at the end of the last financial year.