32% net up in Quarter3 for HDFC Bank
Strong loan expansion in Home loan and Personal Loan and lower interest expenses
helped HDFC Bank report a third quarter net profit of Rs 818.5 crore, a growth of 31.6% over Rs 621.7 crore in the corresponding period last year. Outstanding loans rose to Rs 1, 21,051 crore, a growth of 21%, for the past 12 months. For the first three quarters, the growths in advances were at 20% as against an 8.8% growth for the banking system. Gross non-performing assets as of December declined to 1.6 per cent of gross advances as against 1.9 per cent a year-ago. Sequentially, we have grown 5%. Corporate advances have grown 30% while retail was at 11%, Paresh Sukthankar, executive director, HDFC Bank, said. He added that retail growth would have been higher at 17-18%, if the unwinding of the erstwhile Centurion Bank of Punjabs retail portfolio were to be factored in. Overall numbers are in line with the expectations. Current and savings accounts deposits (CASA) have gone up by 130 bps on Quarter on quarter basis. The asset quality improved vis- a`-vis that in the previous quarter. Its restructured assets form only 4% of advances, which is probably the least in the industry, said Rajiv Mehta, research analyst, India Infoline. The bank is among the few which has been growing its retail book. The retail products that have seen a larger growth are car loans and home loans. However, retail loans comprised half the overall advances. Mr Sukthankar feels that although retail credit will pick up even more, corporate
loans will continue to grow slightly faster than retail. Fee-based income grew by 12.4 per cent to Rs 723.7 crore in Q3 FY10 as compared to the year-ago period and emerged as a major contributor to the overall growth along with the net interest income, HDFC Bank, Executive Director, Paresh Sukthankar told reporters. The CASA deposits of the bank is at 49% as against 40% last year, among the highest in the banking system. The bank has shown a 9.19% dip in other income at Rs 853 crore due to revaluation and sale of investments. The main components of the other income were fees and commission at Rs 723.7 crore (up 12.4%). The net interest margins grew to over 4.3% as against 4.2% last year. The bank stock closed at Rs 1,691 up by 0.33% in the Bombay Stock Exchange. Provisions have seen a fall of 15.8% to Rs 447.72 crore in the third quarter. Both the gross NPAs and net NPAs have also seen a fall. The NPA coverage ratio which was at 71% has risen, according to Mr Sukthankar, to 72%. He added that that it does appear that the worst is behind us.
32% net up in Quarter3 for HDFC Bank
By: Bhavana Jhingan
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