Aided by strong gains in fee and trading income, India’s second largest private sector lender HDFC Bank reported a 30 per cent rise in net profit to Rs 606.1 crore for the quarter ended June 30, 2009, as against Rs 464 crore in the year-ago period.
Treasury income, primarily from trading in bonds, soared more than nine times in the June quarter from a year earlier, the bank said.
| SCORECARD | Quarter ended June 30 | |
| 2008 | 2009 | |
| Net profit (in Rs crore) | 606.11 | 464.35 |
| Net interest income (in Rs crore) | 1855.60 | 1723.47 |
| Net interest margin(in %) | 4.20 | 4.10 |
| Total income (in Rs crore) | 5136.75 | 4215.15 |
| Low-cost deposits (in %) | 45.00 | 44.90 |
| Net NPAs (in %) | 0.60 | 0.50 |
| Capital adequacy ratio (in %) | 15.40 | 12.20 |
Over the same period, gross advances increased a paltry 7.7 per cent, sharply lower than 30 per cent a year earlier. Paresh Sukthankar, executive director, said the increase seemed low against the high base of the year-ago quarter, which had seen a strong growth in loans. “But seen from a sequential basis, our loan book grew 5 per cent in the first quarter of this year, while it was nearly flat in the previous quarter. So we have gone back to putting out loans,” he said.
The lender’s net interest income increased 7.6 per cent to 1,855.6 crore as against Rs 1,723.47 crore for the quarter ended June 30, 2008.
Other income, or non-interest income, grew 75.9 per cent to Rs 1,043 crore from Rs 593 crore in the year-ago quarter. Out of this, fee income grew 27 per cent to Rs 649.3 crore while income from treasury operations was Rs 157.4 crore as against a loss of Rs 77.6 crore in the corresponding quarter last year.
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Total deposits grew 11 per cent to Rs 145,732 crore for the quarter ended 30 June, 2009 as against Rs 130,918 crore in the corresponding quarter last year.
However, money set aside as provisions for bad loans doubled to Rs 658 crore from Rs 344 crore in the corresponding quarter last year. Gross non-performing assets (NPAs) increased to Rs 2,163 crore as against Rs 1,502 crore in the year-ago quarter.
Gross NPAs as a percentage of gross advances climbed to 2.05 per cent as on 30 June, 2009 against 1.54 per cent in the corresponding quarter last year. Net NPAs as a percentage of net advances were marginally up at 0.6 per cent as against 0.5 per cent in the year-ago quarter. Total restructured assets amounted to 0.55 per cent of the total loan book as on June 30, 2009.
The lender’s net interest margin for the June-quarter was 4.2 per cent. Sukthankar said the lender had managed to maintain its NIM in the 3.9-4.2 range over the past few quarters and expected to be able to do so in the coming quarters. Retail loans accounted for nearly 58.1 per cent of the lender’s total loan book as on June 30, 2009.
Sukthankar said he expected credit growth in the banking system to pick up in the coming quarters to 18-20 per cent by the year-end. He added that HDFC Bank’s corporate loan book might grow at a marginally faster pace than its retail loan book depending on demand.
SBBJ Q1 net jumps two-fold at Rs 147 crore
Mumbai: Public sector bank State Bank of Bikaner & Jaipur (SBBJ) today said its net profit for the quarter ended June 30, 2009, jumped two-fold to Rs 147.30 crore, over the same period last year. The bank’s income rose to Rs 1,103.81 crore for the June quarter against Rs 999.95 crore in the same quarter last year.