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HDFC Bank maintained its 30 per cent quarterly net profit growth performance in the April-June quarter helped by robust loan growth and higher interest income.
The second largest private sector bank reported a net profit of Rs 1,844 crore in the first quarter ended June 30, 2013, against Rs 1,417 crore in the corresponding quarter last year.
The bank has been logging 30 per cent quarterly growth rates consistently over the last few years.
Net interest income (difference between interest earned and expended) increased 21 per cent to Rs 4,419 crore. Other income was up 17 per cent.
Net non-performing assets (NPAs) increased to 0.3 per cent from 0.2 per cent in the same quarter last year. Gross NPAs remained flat at 1 per cent. Stress was witnessed in the commercial vehicle and equipment segments.
According to Paresh Sukthankar, Executive Director, HDFC Bank, “The rate of growth has moderated in the corporate sector and specific provisions have increased substantially.... Also, there was more pressure in the June quarter as compared to March.”
Unless there is a sharp recovery in capital expenditure by companies, retail loan growth will outpace wholesale lending, he said.
As on June 30, year-on year advances grew by 21 per cent to Rs 2.59-lakh crore with retail loans accounting for 54 per cent of the total and wholesale loans the rest. Deposits rose to Rs 3.04-lakh crore, up 18 per cent.
During the quarter, retail loans grew by 25.5 per cent and wholesale loans by 16.5 per cent.
Net interest margin was at 4.6 per cent, similar to that in the preceding and corresponding year-ago quarters.
Sukthankar said the steps taken by the Reserve Bank of India to address rupee volatility are unlikely to have a significant impact on the bank’s performance.
“There will probably be some mark-to-market impact on our bond portfolio. But beyond that we do not see any major impact. We are largely deposit funded. So, we are fine,” he said.
However, the measures clearly exacerbate the liquidity concerns which already existed in the system, he added.
HDFC Bank scrip declined 2.3 per cent to close at Rs 662.25/share on the Bombay Stock Exchange.
beena.parmar@thehindu.co.in
Source: thehindubusinessline
The second largest private sector bank reported a net profit of Rs 1,844 crore in the first quarter ended June 30, 2013, against Rs 1,417 crore in the corresponding quarter last year.
The bank has been logging 30 per cent quarterly growth rates consistently over the last few years.
Net interest income (difference between interest earned and expended) increased 21 per cent to Rs 4,419 crore. Other income was up 17 per cent.
Net non-performing assets (NPAs) increased to 0.3 per cent from 0.2 per cent in the same quarter last year. Gross NPAs remained flat at 1 per cent. Stress was witnessed in the commercial vehicle and equipment segments.
According to Paresh Sukthankar, Executive Director, HDFC Bank, “The rate of growth has moderated in the corporate sector and specific provisions have increased substantially.... Also, there was more pressure in the June quarter as compared to March.”
Unless there is a sharp recovery in capital expenditure by companies, retail loan growth will outpace wholesale lending, he said.
As on June 30, year-on year advances grew by 21 per cent to Rs 2.59-lakh crore with retail loans accounting for 54 per cent of the total and wholesale loans the rest. Deposits rose to Rs 3.04-lakh crore, up 18 per cent.
During the quarter, retail loans grew by 25.5 per cent and wholesale loans by 16.5 per cent.
Net interest margin was at 4.6 per cent, similar to that in the preceding and corresponding year-ago quarters.
Sukthankar said the steps taken by the Reserve Bank of India to address rupee volatility are unlikely to have a significant impact on the bank’s performance.
“There will probably be some mark-to-market impact on our bond portfolio. But beyond that we do not see any major impact. We are largely deposit funded. So, we are fine,” he said.
However, the measures clearly exacerbate the liquidity concerns which already existed in the system, he added.
HDFC Bank scrip declined 2.3 per cent to close at Rs 662.25/share on the Bombay Stock Exchange.
beena.parmar@thehindu.co.in
Source: thehindubusinessline
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