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HDFC Bank Ltd.

BSE: 500180 Sector: Financials
NSE: HDFCBANK ISIN Code: INE040A01026
BSE LIVE 15:40 | 13 Dec 1821.80 -2.25
(-0.12%)
OPEN

1823.00

HIGH

1844.85

LOW

1815.85

NSE 15:46 | 13 Dec 1821.35 1.45
(0.08%)
OPEN

1820.05

HIGH

1845.00

LOW

1815.10

OPEN 1823.00
PREVIOUS CLOSE 1824.05
VOLUME 3641254
52-Week high 1876.95
52-Week low 1165.00
P/E 29.65
Mkt Cap.(Rs cr) 471,491
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1823.00
CLOSE 1824.05
VOLUME 3641254
52-Week high 1876.95
52-Week low 1165.00
P/E 29.65
Mkt Cap.(Rs cr) 471,491
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

HDFC Bank Ltd. (HDFCBANK) - Chairman Speech

Company chairman speech

ANNUAL REPORT 2000-2001 HDFC BANK Seventh Annual General Meeting of HDFC Bank Limited Chairman's Address Esteemed Members of HDFC Bank Ladies & Gentlemen, It gives me immense pleasure to welcome you to this, the Seventh Annual General meeting of the shareholders of HDFC Bank. Before I commence today's proceedings I, for myself and on behalf of the Board of Directors like to place on record the invaluable contribution made by Mr. S. S. Thakur during the bank's initial formative years until his retirement. I sincerely hope that our efforts to appoint an eminent personality of his stature and experience are successful to help the bank continue its growth in future. With your permission, I would like to update you on the progress your bank has made in the financial year ended 31st March, 2001 and also to share with you the outlook for the current financial year. Financial Highlights - 2000-01: The financial year ended March 31, 2001 represented the first full year of your bank's operations after the Times Bank merger. The financial performance in terms of both business volumes and revenues was extremely strong. The bank's total deposits increased by 38% from Rs.8428 crores to Rs.11658 crores. Most significantly, the stable, low cost savings account deposits which reflect the strength of your bank's retail franchise increased by 69% from Rs.1125 crores to Rs.1903 crores; On the assets side also, there was an impressive growth with advances up 34% from Rs.3462 crores to Rs.4637 crores. As a result of the strong balance sheet and overall business growth, total net revenues increased by 60.4% from Rs.431 crores to Rs.691 crores. Net profit after tax also registered a healthy growth of 75% from Rs.120 crores to Rs.210 crores. Dividend: Consistent with the bank's track record of maintaining a steady increase in dividends, your Directors have recommended a dividend of 20% for the year ended March 31, 2001 as against 16% for the previous financial year. The increase in dividend reflects a balance between the desire to reward shareholders on the one hand and the need for healthy retention to meet the bank's growing investment and capital adequacy needs on the other. Capital Needs: To support your bank's growth plans and in view of the more stringent regulatory guidelines relating to capital adequacy expected in the near future, your bank would require to raise capital in the current financial year. The Board of Directors is currently considering an offering of depository receipts in the international markets as one of the option for raising capital. Your approval in this regard is being sought. Branch Expansion: As of March 31, 2001, your bank had a network of 131 branches and extension counters and 207 ATMs up from 111 outlets and 111 ATMs as of March 31, 2000. In the current financial year also, the bank has an aggressive branch expansion plan. As of today, the bank has 134 outlets and hopes to expand the network to about 160 branches by March 2002. The wider branch network would enable the bank to strengthen its position, not only in the retail, but also the cash management and other corporate banking businesses. The growing network together with the alternative channels like phonebanking, mobile banking and netbanking will also help sustain a continued deposit and loan growth. Business Update: I am happy to inform you that your bank continues to experience healthy growth across various business areas. In the Corporate Banking business, despite the sluggish macro economic environment, your bank has been able to grow its loan book and increase its trade and cash management volumes. On the Treasury front, in the foreign exchange business in particular, the bank's focus on customer related transaction flows and on expanding its product range have enabled it to achieve a healthy growth in revenues. The local currency debt securities business remained focussed on optimizing the returns and market risk on the government securities portfolio which is required to be held for statutory liquidity ratio (SLR) requirements. On the Retail Banking side, significant franchise expansion has been achieved in terms of both deposits and loans. The total number of retail accounts increased from 0.8 million in March 2000 to over 1.4 million in March 2001. On the retail loan side, your bank now offers a wide product range including car loans, personal loans secured by shares and loans for consumer durables. Your bank is the largest issuer of debit cards in the country. It also remains a leader in providing cash settlement services to stock exchanges and depository participant (DP) services to retail investors. Asset Quality and Risk Management: Notwithstanding the volatile and difficult macro economic environment, the quality of your bank's credit portfolio continues to remain healthy. As at March 31, 2001 your bank's net non-performing assets were 0.45% of advances, which I believe is amongst the best in the Indian banking industry. As a prudent policy your bank has maintained a highly diversified portfolio and has also made general loan loss provisions for standard assets which are well over the minimum levels prescribed by Reserve Bank of India. Business Prospects and Growth Strategy: As you are aware, the current economic environment is challenging, with persistent sluggishness in industrial production and an overall dampening of business confidence. The rapid dismantling of trade barriers, decline in several international commodity prices and intensifying global competition have exposed the Indian corporate sector to greater risk. The volatility in domestic and international stock markets has also caused its share of uncertainty. In such an environment, your bank's growth would have to be driven by enhanced customer acquisition, geographic expansion, new product introductions as well as increased penetration of the existing customer base without compromising on portfolio quality. I believe, your bank is well positioned in this respect and should be able to achieve healthy growth in terms of both business volumes and profitability. Conclusion: In conclusion, I would like to state that over the last six years your bank has built a solid foundation based on strong parentage, technological superiority, multiple product franchises and prudent risk management. Having successfully integrated the Times Bank, having almost one and a half million banking accounts and with a balance sheet size of over Rs.15,000 crores, your bank has moved from being a fledging new entrant to a meaningful and highly respected player in the Indian banking industry. Looking ahead I view your bank's future with continued optimism and am confident that all the bank's stakeholders, including its shareholders, customers and employees would benefit from the expected growth in the bank's business and earnings in the coming years. I would like to take this opportunity to the all of you as part of the family of almost 300,000 shareholders, as well as our customers, the Reserve Bank of India, our promoters HDFC and our strategic business collaborators Chase for all the help and encouragement they have extended to the bank. I look forward to their continued support. Finally, l would like to compliment our staff at all levels for their dedicated efforts in making the bank what it is today. Thank you. D. M. Satwalekar 1st June, 2001.