Hdfc Bank Results
October 19, 2010 by Post Team
The Board of Directors of HDFC Bank Limited approved (Indian GAAP) of Bank Account for the quarter and half year to September 30, 2010 to
its meeting in Mumbai on Tuesday, October 19, 2010. The results for the six months September 30, 2010, have undergone an “audit” and the results for the quarter ended September 30, 2010, have been subject to “limited review” by the auditors of the Bank.
Gain & Loss Account: the quarter ended September 30, 2010
The Bank’s total income for the quarter ended September 30, 2010 was Rs.5, 770.7 million rupees compared to Rs.5, 045.4 million rupees for the quarter ended September 30, 2009. Net income (net interest income plus other income) is Rs.3, 487.0 crore for the quarter ended September 30, 2010, an increase of 15.9% from Rs.3, 009.3 million rupees for the corresponding quarter last year. Interest earned (net of loan origination costs and amortization of premiums on investments held in the place of maturity (HTM) category) increased from Rs.3, 991.9 million rupees in the quarter ended 30 September 2009 to Rs.4, 810.0 crore in the quarter ended September 30, 2010. Net interest income (interest earned less interest expended) for the quarter ended September 30, 2010 grew by 29.2% to Rs.2, 526.3 million rupees, driven by average asset growth of 30 0% and stable net interest margin (NIM) of 4.2%, which was also the IMS for the quarter ended September 30, 2009.
Other income (interest income) for the quarter ended September 30, 2010 was Rs.960.7 crores, mainly provided by fees and commissions of Rs.857.0 crores up by 16.0% over Rs.738.6 million rupees in the quarter ended September 30, 2009. From April 1, 2010, the Bank has classified the fees paid in connection with transactions by bank customers at ATMs of other banks, which until now were offset by fees and commissions, operating expenses. The other two components of other income & foreign exchange revenues were Rs.152.3 crore and a profit / (loss) on sale or revaluation of investments of Rs. (52.1) million rupees, compared to Rs.151.0 crore and Rs.162.9 crores respectively for the corresponding quarter to September 30, 2009.
Operating expenses, reclassified as mentioned above, for the quarter ended September 30, 2010 rose 18.6% to Rs.1, 679.9 million rupees. The basic cost income ratio (excluding gains or losses on bonds) stood at 47.5% versus 49.8% for the quarter ended September 30, 2009. Because of the improved asset quality, reflected in the ratio of gross non-performing assets to gross advances reduced from 1.8% to September 30, 2009 to 1.2% as of September 30 2010, provisions and contingencies decreased from Rs.594.1 crore for the quarter ended September 30, 2009 to Rs.454.5 crore (including loan loss provisions of Rs.445.0 crores) for the quarter ended 30 September 2010.
Profit before tax for the quarter ended September 30, 2010 increased by 35.4% during the corresponding quarter to September 30, 2009 to Rs.
1,352.6 crore. After providing Rs.440.5 crores on taxation, the Bank earned a net profit of Rs.912.1 crore, up 32.7% in the corresponding quarter to September 30, 2009.
Balance: At September 30, 2010
Bank’s total balance sheet size increased by 28.9% to Rs.249, 983 crore at September 30, 2010. Total deposits were Rs.195, 321 crore, up by 30.4% over September 30, 2009. Deposits in savings accounts Rs.59, 525 crores and current account deposits at Rs.39, 363 crore at September 30, 2010, CASA deposits grew 31.1% over on September 30, 2009. HOME mixture therefore 50.6% of total deposits at September 30, 2010. Gross advances grew by 37.7% over September 30, 2009 to Rs.158, 512 crore. Adjust once movements in the wholesale lending, core growth in advances was 32% compared with growth of around 19% in the banking system. Retail loans grew by 30.8% over September 30, 2009 to Rs.81, 950 crore and constituted 51.7% of gross advances.
Half Year ended September 30, 2010
For the six months ended September 30, 2010, the Bank had total income of Rs.11, 181.3 million rupees compared to Rs.10, 218.1 crore in the corresponding period last year. Net income (net interest income plus other income) for the six months ended 30 May 2010 were Rs.6, 878.5 million rupees, against Rs.5, 944.4 million rupees for the six months ended September 30, 2009. Net income for the six months ended September 30, 2010 was Rs.1, 723.9 million rupees, up 33.3% in six months for the September 30, 2009.
Bank’s total Capital Adequacy Ratio (CAR) to September 30, 2010 (calculated according to the guidelines of Basel 2) remained strong at 17.0% versus
15.7% at September 30, 2009 and against the regulatory minimum of 9%. Tier I CAR was 12.7% at September 30, 2010 as against 10.9% at September 30, 2009.
At September 30, 2010, the bank’s distribution network was 4.721 branches and 1765 ATMs in 819 cities compared to 1.506 3.573 branches and ATMs in 635 cities by September 30, 2009.
Portfolio quality as of September 30, 2010 remained healthy with gross assets in default (PAN) in 1.2% of gross advances and net non-performing assets at 0.3% of net advances ( compared to 1.8% gross NPA and 0.5% net rate of PAN, September 30, 2009). the Bank’s provisioning policies for specific provisions for loan losses remained higher than regulatory requirements. The NPA provision coverage ratio (excluding amortization) was 78% at September 30, 2010 compared with 70% to September 30, 2009. Total restructured assets, including applications received for the restructuring of loans were 0.3% of gross advances of the bank at September 30, 2010. Of this amount the standard asset category were 0.1% of the bank’s gross advances.
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