HDFC Bank, the second largest private sector bank, today reported a 40 per cent increase in its net profit in the quarter ended September 2007 from a year earlier on robust growth in consumer loans and fee income. | |
| The bank's total income for the quarter ended September 30 grew by 44 per cent to Rs 2,845.1 crore from a year earlier. Other income (non-interest revenue) for the second quarter was Rs 482.4 crore against Rs 397.7 crore a year earlier, including fee and commission income of Rs 391.9 crore. The bank's net profit increased to Rs 368.48 crore in the second quarter of 2007-08 from Rs 262.94 crore a year earlier. |
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| "The growth has been well balanced for the bank. The retail business has grown at 37 per cent and the corporate business has also grown faster. Our retail loan growth is not dependent on mortgages. We have a diversified portfolio. Within retail, there is some slowdown in the two-wheeler loans, but business banking, personal loans, credit cards and third-party product distribution did well,'' said Paresh Sukthankar, head, credit and market risk, HDFC Bank. |
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| The bank's total deposits were Rs 91,069 crore, an increase of 43.5 per cent and total customer assets (including advances, corporate debentures and investments in securitised paper) increased to Rs 65,812 crore as of September 30, from Rs 49,326 crore a year earlier, a growth of 33.4 per cent. Retail constitutes around 55.1 per cent of HDFC Bank's gross advances. |
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| "There has been no change in our core growth strategy. The opportunity was there and we have cashed in on it. Whenever we see the opportunity, we will grow faster,'' said Sukthankar, when asked about net profit growth at a much higher pace than the usual around 30 per cent. |
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| The bank's net interest margin (NIM) stood at 4 per cent against 3.8 per cent. In 2006-07, the bank's NIM was 4.3 per cent. |
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| The bank's capital adequacy at the end of September 2007 was 14.9 per cent as the bank raised $1 billion through an American depository receipts (ADR) issue and net non-performing assets at 0.4 per cent. |
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| "We don't see any reason why the margin should not be in the range of 3.8-4 per cent in the coming quarters. We will have to see the impact of the recent softening of rates on demand. We would continue to focus on retail business and grow the business banking, personal loan and credit card business. On the wholesale side, we see growth opportunity in the emerging corporate and large corporate business,'' said Sukthankar. |
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| The bank's capital adequacy at the end of September 2007 was 14.9 per cent as the bank raised $1 billion through an American depository receipts (ADR) issue and net non-performing assets at 0.4 per cent. |
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