HDFC Bank Q4 and FY06 results meet expectations

Interest income, including investment income and interest in balances with RBI, for the full year increased 44.67 per cent to Rs4,475.34 crore from Rs3,093.49 crore. Income from treasury operations and other income were higher by 72.56 per cent at Rs1,123.98 crore from Rs651.34 crore.

Interest expenses for the full year increased 46.67 per cent to Rs1,929.5 crore from Rs1,315.56 crore for the previous year. Operating expenses, including staff costs, rose 55.8 per cent to Rs1,691.09 crore from Rs1,085.4 crore.

Operating margins for the year were at 35.34 per cent, marginally lower than 35.89 per cent for the previous year.

For the quarter ended March 2006, the bank''s net profit increased by 30.06 per cent to Rs263.21 crore or Rs8.4 per equity share from Rs202.37 crore or Rs6.7 per equity share for the previous year quarter.

Interest income, including income from investments, for the quarter increased by 58.96 per cent from Rs867.21 crore to Rs1,378.5 crore. Income from treasury operations and other income increased by 38.21 per cent to Rs304.15 crore from Rs220.06 crore.

The pressure of rising deposit rates is evident from the 80.73 per cent rise in interest expenses to Rs639.09 crore from Rs353.63 crore. Other expenditure, including staff costs, increased 46.78 per cent to Rs482.32 crore from Rs328.6 crore.