HDFC Bank net up by 45%

Thursday, January 15, 2009 at 3:01 am

Buoyed by an impressive growth in its net interest margin and other income, India’s second largest private sector lender, HDFC Bank has clocked a 44.81 per cent surge in its net profit for the quarter ended December 31. Net profit, during the period, grew to Rs 621.74 crore as against Rs 429.36 crore in the year-ago period.

The bank has decided to be cautious on its loan disbursals in the coming months in view of the challenging market conditions in sensitive credit portfolios, its Executive Director, Paresh Sukhtankar said. “We will be cautious in our lending given the current market conditions. Maintaining the quality of assets is important (to avoid further slippages),” Sukhtankar said in Mumbai.

The bank has seen a rise in its gross non performing assets (NPA) in Q3, which went up to 1.9 per cent as against 1.6 per cent as on September 30, 2008. Net NPAs during the period stood at 0.6 per cent, he said. “The bank is well positioned to maintain the business growth and expects the NPA levels under manageable levels,” Sukhtankar said.

The lenders’s total income, during the period, rose 58.79 per cent to Rs 5,407.89 crore in the December quarter, from Rs 3,405.79 crore in the year-ago period while the interest income grew 63.87 per cent to Rs 4,468.50 crore. The non-interest income, during the period jumped by around 40 per cent grew to Rs 934.4 crore as against Rs 678.9 crore in the year-ago period.

At present, HDFC Bank has a credit portfolio of Rs 71,387 crore, which grew by around 38 per cent year-on-year. Total deposits of the bank stands at Rs 1, 44,862 crore. “Retail portfolio continues to be a focus area of the bank and contributes 59 per cent to the total advances of the bank. A similar focus will be given to the corporate loan segment also,” Sukhtankar said.

The bank has only an “insignificant exposure” to the crisis-ridden Satyam Computers in the form of current accounts, forward contracts and “a few vehicle loans to Satyam employees”, he said. HDFC Bank plans to open nearly 200 branches in the next 12 months and would hire more staff to support its expanding operations, the ED said.

The lender has 1,412 branches and 55,000 employees. Last year, HDFC Bank merged Centurion Bank of Punjab (CBoP) with itself and the amalgamation became effective on May 23, 2008. The capital adequacy ratio of the bank stands at 13.7 per cent.

(With inputs from agencies)

( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)

HDFC Bank net up by 45%

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