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Thursday, Oct 15, 2009
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Business Daily from THE HINDU group of publications Thursday, Oct 15, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Private Banks Corporate Results - Private Banks Money & Banking - Financial Performance
Our Bureau Mumbai, Oct. 14 HDFC Bank’s net profit grew by 30 per cent to Rs 687 crore in the second quarter ended September 30, 2009, against Rs 528 crore in the same period last year. The rise in profit was on account of strong ‘other income’ and lower costs of funds. 
Within non-interest income, fees and commissions were Rs 692 crore, foreign exchange revenues were Rs 151 crore and profits from revaluation or sale of investments were Rs 163 crore. Cost-income ratioMr Paresh Sukthankar, Executive Director, HDFC Bank, said the bank was able to reduce its cost-to-income ratio to less than 50 per cent, from 55 per cent last year. Net interest margin was unchanged because the 0.5 per cent decline in loan yields was offset by a similar decline in cost of deposits. While cost of funds has been coming down, there would be more re-pricing of deposits over the next two quarters, Mr Sukthankar said. In the second quarter, the incremental growth in advances was 9 per cent or Rs 9,000 crore. Of this, corporate loans accounted for Rs 7,000-8,000 crore and retail, Rs 1,000-1,500 crore. “We do see a pick-up in retail loans, but corporate loans have grown faster. “ For some time corporate loans will continue to grow faster. But the momentum in retail will sustain,” Mr Sukthankar said. Shares of HDFC Bank closed at Rs 1,702.55 on the BSE on Wednesday, up 0.13 per cent from the previous close of Rs 1,700.4. Credit growthThe bank’s auto loans portfolio increased to Rs 17,000 crore in the second quarter, against Rs 13,500 crore in the corresponding period last year. Going ahead, the bank is likely to see credit growth at 17-18 per cent this fiscal, Mr Sukthankar added. The bank saw a decline in its gross non-performing assets because of higher provisioning at 70 per cent, against 65 per cent. Capital-adequacy ratio, which is at a healthy 15.7 per cent, would improve when the warrants from HDFC get exercised, Mr Sukthankar said. HDFC Bank net rises 31% on growth in non-interest income Now, a loan mela to buy jewellery HDFC Bank raises FY10 growth forecast to 6.5% More Stories on : Private Banks | Private Banks | Financial Performance | HDFC Bank Ltd
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