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Saturday , January 19, 2013
HDFC Bank Q3 net up 30%
Publication: Business Standard , Journalist:BS Reporter
Edition:Chandigarh/Chennai/Pune/Hyderabad/Ahmedabad/Bangalore/Kochi/Delhi/Mumbai , Page No: 8, Location: Top­Left , Size(sq.cms): 225
HDFC Bank Q3 net up 30%
Strong growth in retail advances and high fee income aid earnings
BS REPORTER
Kolkata, 18 January
H
DFC Bank, India's
second­largest
private sector lender,
today said its net profit for
the quarter ended December
rose 30 per cent to 51,859 crore,
compared to the
corresponding period of the
previous year.
This was the 53rd
consecutive quarter in which
the bank saw annual growth
of 30 per cent or more in net
p r o f i t , a c c or d i n g t o a n
analyst estimate. Strong
growth in retail advances, a
stable net interest margin and
higher fee income aided the
bank's earnings during the
quarter. Net interest income,
or the difference between
interest income and interest
expenditure, rose 22 per cent
to 53,799 crore, compared to
t h e y e a r­a g o p e r i o d . N e t
interest margin stood at 4.1 per
cent, the same as in the year­
ago period and 10 basis
points lower than in the
previous quarter.
"The performance reflects
continued execution of our
strategy of balanced margin and
stable asset quality," said
Executive Director Paresh
Sukthankar. He added for the
coming quarters, the bank's
margin was estimated at3.9­
4.2 per cent. HDFC Bank's net
interest margin has been in
this range for about five
years.
Fee income rose 24.3 per
c e n t y e a r­on­year, helping
the bank's other income rise
26.7 per cent. As of
December­end,
the core cost­to­income ratio
was 47.1 per cent. Provisions na­
rrowed to 5307 crore, compared to
the year­ago period. Seque­
ntially, however, these rose
due to slippages in
commercial vehicle and
c o n s t r u c t i o n e q u i pment
loans. The provision cov­
erage ratio was 80 per cent.
The bank's gross non­per­
forming asset ratio stood at
one per cent, a rise of three
basis points from a year
earlier and a nine­basis point
decline sequentially. Net bad
loan ratio
was unchanged at 0.2 per
cent. Retail loans accounted for
about 8 0 p e r c e n t o f t h e
additions in HDFC Bank's
gross bad loans during the
quarter.
Sukthankar, however,
clarif i e d t h e b a n k ' s a s s e t
quality was healthy, adding
there was no sign of stress in its
r e t a i l o r w h ol e s a l e l o a n
portfolios.
Total restructured loans
accounted for 0.3 per cent of
gross advances. Net
advances increased 24.3 per
centyear­on­year to 52,41,493
crore. While retail loans rose 28
per cent from a year earlier,
corporate loans saw a 18.5
per cent rise.
As of December­end, the
ratio of retail loans to
wholesale segments was
53:47. Total deposits
increased 22 per cent from a
year earlier to 52,84,119 crore.
The share of low­cost current
account and savings account
deposits to total deposits
was 45.4 per cent.
At the end of the quarter,
HDFC Bank's capital
adequacy ratio stood at 17
per cent.