HDFC Bank’s Q1 net profit up over 30% at Rs1,844 crore

Private sector lender HDFC Bank has reported an over 30 per cent year-on-year increase in its net profit, at Rs1,843.86 crore, for the first quarter of the 2013-14 financial year.

HDFC Bank had earned a net profit of Rs1,417.39 crore in the April-June quarter of 2012-13, according to the bank's filing with the Bombay Stock Exchange (BSE).

Profit before tax of the bank stood at Rs2,779.0 crore, an increase of 32.7 per cent over the quarter ended 30 June 2012. After providing Rs935.1 crore for taxation, the bank earned a net profit of Rs1,843.9 crore.

HDFC Bank's total income for the quarter ended 30 June 2013 rose to Rs11,588.6 crore from Rs9,825.2 crore during the quarter ended 30 June 2012.

Net revenues (net interest income plus other income) during the April-June 2013 quarter increased by 19.7 per cent to Rs6,344.3 crore, as against Rs5,301.8 crore during the corresponding quarter of the previous financial year.

Net interest income (interest earned less interest expended) for the quarter ended 30 June 2013 accounted for 69.6 per cent of net revenues and grew by 21.0 per cent to Rs4,418.7 crore from Rs3,652.4 crore for the quarter ended 30 June 2012.

Net interest margin for the quarter remained unchanged at 4.6 per cent compared to the corresponding quarter ended 30 June 2012 and for the preceding quarter ended 31 March 2013.

Other income (non-interest revenue) at Rs1,925.6 crore was 30.4 per cent of net revenues for the quarter ended 30 June 2013 as against Rs1,649.4 crore in the corresponding quarter ended 30 June 2012.

The four components of other income for the quarter ended 30 June 2013 were fees and commissions of Rs1,284.5 crore (Rs1,150.4 crore in the corresponding quarter of the previous year), foreign exchange and derivatives revenue of Rs314.3 crore (Rs314.8 crore), gains on revaluation / sale of investments of Rs199.5 crore (Rs66.5 crore) and miscellaneous income, including recoveries of Rs127.3 crore (Rs117.6 crore).

Operating expenses for the quarter rose 15.7 per cent to Rs3,038.2 crore over Rs2,626.6 crore during the corresponding quarter of the previous financial year.

The cost-to-income ratio for the quarter stood lower at 47.9 per cent against 49.5 per cent for the corresponding quarter ended 30 June 2012. Provisions and contingencies for the quarter stood at Rs527.1 crore (including specific loan losses, general and floating provisions) as against Rs581.6 crore for the corresponding quarter ended 30 June 2012.

HDFC Bank said it continued to outpace the banking industry growth rate in both advances and deposits.