Declare: HDFC Bank declares dividend of Rs6.50 for FY21

19 Jun , 2021 By : Kanchan Joshi

Private lender HDFC Bank on Friday announced that the board has declared a dividend of Rs6.50 per share for the year ended 31 March 2021.

"A dividend of Rs6.50 per equity share ( 650 per cent on face value of Re 1) out of the net profits for the year ended March 31, 2021, has been recommended, subject to the approval of the shareholders of the bank at its ensuing Annual General Meeting (AGM)," HDFC Bank said in a regulatory filing.

If approved at the AGM, the expected date for payment of dividend in electronic form and for dispatch of physical dividend warrants would be August 2, 2021 onwards, it added.

The AGM of the bank is scheduled for July 17, 2021 through video conferencing and other audio visual means.

Besides, the board approved revising the re-appointment of Umesh Chandra Sarangi as an independent director from March 1, 2021 till February 29, 2024.

Earlier, the board had okayed his tenure from March 2021 till February 5, 2022.

Also, the board sought to appoint M M Nissim & Co LLP, chartered accountant firm, as its first preferred firm to act as joint statutory auditors for three years till FY2023-24. This is subject to RBI approval.

MSKA & Associates is its statutory auditor at present.

As per RBI guidelines, banks with asset size of Rs15,000 crore and more at the end of a previous year, need to appoint minimum two joint statutory auditors.

Stock of HDFC Bank closed at Rs 1,479.85 apiece on BSE, up 0.95 per cent from previous close.

HDFC Bank had announced that its net profit rose 18.1% to ?8,186.51 crore for the quarter ended 31 March, 2021. The Bank had posted a net profit of Rs6,927.69 crore in the year-ago period.

The Net Interest Income (NII) rose 12.6% to Rs17,120 crore in this quarter. It was Rs15,204 crore in the quarter ended 31 March, 2020.

HDFC Bank's gross non-performing assets (NPAs) rose 1.32% year-on-year as against 1.26%. The net NPAs stood at 0.40% as against 0.36% in the year-ago period.

The lender's net interest margin for Q4FY21 stood at 4.2% as against 4.3% in March 31, 2020 quarter. Moreover, the deposits are up 16.3% YoY while advances are up 14% YoY.