HDFC Bank net up 31% to Rs 199 cr

BS 200 SCORECARD

The second-largest private sector bank, HDFC Bank, today reported its net profit in the second quarter ended September 30, 2005 rose 31.09 per cent to Rs 199.64 crore from Rs 152.29 crore a year earlier, riding on high fee income and high growth in advances.

Net profit in the first half of 2005-06 was Rs 383.2 crore, up by 31.1 per cent over a year earlier. The bank's capital adequacy ratio dipped to 10.4 per cent per cent in the reporting quarter from 10.9 per cent a year earlier.

Total income rose by 47.9 per cent at Rs 1,283.05 crore during the second quarter from Rs 867.42 crore a year earlier. Its net interest income (interest earned less interest expended) during July-September 2005 increased to Rs 612.1 crore, a year-on-year rise of 43.8 per cent.

This was driven by an average asset growth of 36 per cent and an expansion in net interest margin to just above 4 per cent from 3.8 per cent. On the other hand, the total expenditure surged by 43.44 per cent to Rs 812.41crore from Rs 566.38 crore a year earlier. HDFC Bank's deposits growth was much slower than the increase in advances. Deposits grew by 35.79 per cent at Rs 45,446.09 crore. Total advances increased 55.17 per cent at Rs 31,70,564 crore.

The bulk of the increase in advances came from the retail loans business, which grew by 73.8 per cent year-on-year at Rs 17,453 crore.