HDFC net profit up by 43.4 % in Q2 '09

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Mumbai, Oct 16 (UNI) Leading private lender HDFC Bank today reported a 43.3 per cent icnrease in its net profit at Rs.528 crore for the second quarter of current fiscal.

The net profit has been worked out after providing Rs.248.8 crore for taxation, the Bank said in a release here. The total income of the bank during the period was Rs 4,634.3 crore, up by 62.9 per cent over the corresponding period last year. Net revenues (net interest income plus other income) were Rs.2,509.6 crore for the quarter ended September 30, 2008, an increase of 52.6 per cent over Rs.1,645.1 crore for the corresponding quarter of the previous year.

Interest earned (net of loan origination costs and amortization of premia on investments held in the Held to Maturity (HTM) category) increased from Rs.2,362.8 crore in the quarter ended September 30, 2007 to Rs.3,991.2 crore in the quarter ended September 30, 2008, up by 68.9 per cent. Net interest income (interest earned less interest expended) for the quarter ended September 30, 2008 increased by 60.5 per cent to Rs.1,866.5 crore, driven by average asset growth of 52.5 per cent and a net interest margin (NIM) of around 4.2 per cent as against four per cent for the quarter ended September 30, 2007.

Other income (non-interest revenue) for the quarter ended September 30, 2008 was Rs.643.1 crore as against Rs.482.4 crore for the quarter ended September 30, 2007. Fees and commission was the main contributor to other income for the quarter and increased by 49.9 per cent to Rs.587.3 crore. The other two major components of other income were foreign exchange/derivatives revenues of Rs.

67.5 crore (corresponding quarter ended September 30, 2007) Rs 38.7 crore) and (loss) on revaluation/sale of investments of Rs. (15.6) crores, as against profit of Rs.46.2 crore for the quarter ended September 30, 2007.

The merger of Centurion Bank of Punjab Ltd (CBoP) with HDFC Bank Limited became effective on May 23, 2008 as per the order of Reserve Bank of India (RBI) with April 1, 2008 as the appointed date. The results for the period ended September 2008 are therefore for the merged entity, whilst the results for the period ended September 2007 are on a standalone basis for HDFC Bank. The results are therefore not comparable.

The Bank's total balance sheet size increased by 41.3 per cent from Rs.121,545 crore as of September 30, 2007 to Rs.171,765 crore as of September 30, 2008. Total deposits were Rs.133,781 crore, an increase of 46.9 per cent from September 30, 2007. Savings account deposits grew by 46.6 per cent to Rs.32,794 crore as of September 30, 2008. With current account deposits at Rs.26,123 crore, the CASA mix for the merged entity was around 44 per cent of total deposits as at September 30, 2008 despite large increases in time deposits during the quarter. The Bank's total customer assets (including advances, corporate debentures, etc.) increased to Rs.107,820 crore as against 65,812 crore as of September 30, 2007.

Retail loans at Rs 58,400 crore from 54.7 per cent of gross advances.

For the half-year ended September 30, 2008, the Bank earned total income of Rs.8,849.5 crore as against Rs.5,486.8 crore in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the six months ended September 30, 2008 were Rs.4,826.5 crore, up by 50.7 per cent over Rs.3,203.1 crore for the six months ended September 30, 2007. Net Profit for the half-year ended September 30, 2008 was Rs.992.3 crore, up by 43.9 per cent over the corresponding six months ended September 30, 2007.

The Bank's total Capital Adequacy Ratio (CAR) as at September 30, 2008 stood at 11.4 per cent as against the regulatory minimum of nine per cent. Tier-I CAR was 8.8 percent.

The Bank said its provisioning policies for specific loan loss provisions remained higher than regulatory requirements. The gross Non Performing assets stood at 1.57 per cent with the net NPA being 0.57 per cent.

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