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HDFC Bank delivers steady Q3; net up 32 per cent
Rex Mathew
12 January 2007

Rising deposit costs have not prevented HDFC Bank, the second largest private sector bank, from delivering a steady 32-per cent rise in net profits for the third quarter. Sustained credit growth has helped the bank to maintain the high growth rate in top line. The bank has been reporting steady bottom line growth of around 30 per cent for the last many quarters.

For the quarter ended 31 December 2006, HDFC Bank has reported a net profit of Rs295.64 crore, or Rs9.4 per share, an increase of 31.75 per cent over Rs224.4 crore, or Rs7.2 per share, for the same quarter of last year. Total income increased 44.49 per cent to Rs2,132.61 crore from Rs1,475.94 crore for the previous year quarter.

Net interest income, the difference between interest earned and interest paid, went up by 38.48 per cent to Rs928.63 crore from Rs670.61 crore a year ago. Other income, including fee and treasury income, went up 26.06 per cent to Rs373.3 crore from Rs296.13 crore.

Operating profits increased 34.64 per cent from the previous year quarter to Rs696.91 crore. Operating margins as a percentage of total income declined to 32.68 per cent from 35.07 per cent a year ago.

The decline in operating margins was mostly on account of a sharp 71.07 per cent jump in staff costs. The bank managed to limit the damage by holding the increase in other operating expenses to 20.69 per cent. Provisions and contingencies were higher by 35.12 per cent at Rs266.39 crore as compared to 197.15 crore for the previous year quarter.

Capital adequacy ratio stood at 12.8 per cent as at the end of the quarter as compared to 12.1 per cent as at the end of September 2006 quarter. During the quarter, the bank raised Rs478.5 crore in upper tier-II capital by issuing subordinated bonds. The bank's branch network expanded to 583 and the number of ATM's went up to 1,471.

send this article to a friend For the September 2006 quarter, HDFC Bank had reported a net profit of Rs262.94 crore, or Rs8.4 per share, on total income of Rs2,033.37 crore.

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HDFC Bank delivers steady Q3; net up 32 per cent