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Hdfc Bank Net Up 34% To Rs 62 Crore

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BUSINESS STANDARD
Last Updated : Aug 01 2001 | 12:00 AM IST

HDFC Bank has registered a 33.78 per cent jump in net profit to Rs 62.01 crore for the first-quarter ended June 30, 2001, compared with Rs 46.35 crore in the corresponding quarter of the previous fiscal.

The other income of the bank rose 52.2 per cent to Rs 67.26 crore (Rs 44.19 crore), while the interest income of increased by 39.36 per cent to Rs 388.21 crore (Rs 278.57 crore).

Aditya Puri, managing director of the bank, said, "The other income consists of letter of credit, guarantees, card fees, etc. The business model is based on low volatility."

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The bank plans to emphasise more on its retail segment. Currently, around 43 per cent of its revenue comes through the retail portfolio. Puri said, "Last year, we broke even in the retail segment. The profits through the segment are currently negligible. Within the next two to three years, the profit contribution from the segment will go up to around 40 per cent of the total profit. The infrastructure has been put in place and we will launch the entire suite of products across other cities too."

Currently, the bank has 136 branches and 258 ATMs. By the end of the year, it proposes to increase the number of branches to 161 and the ATMs to 400.

The total deposits of the bank during the quarter increased by 38.4 per cent to Rs 13,209 crore (Rs 9,542 crore) with savings deposits at Rs 2,082 crore. The advances grew by 36 per cent to Rs 7,585 crore (Rs 5,577). The bank's scrip today closed at Rs 234.25 on the Bombay Stock Exchange.

The bank has raised $172.5 million through American depositary shares (ADS) issue -- $150 million on July 20, 2001, and $22.5 million through a greenshoe option on July 24, 2001. After the ADS issue, the bank's share capital rose by Rs 37.42 crore and the reserves increased by Rs 742.92 crore. The capital adequacy ratio of the bank, which is currently at 10.11 per cent, will increase to over 16 per cent when the issue proceeds are brought in.

The interest expenses during the quarter rose by 57.8 per cent to Rs 247.99 crore (157.13 crore), while the other provisions and contingencies marginally declined to Rs 23.64 crore (Rs 27.13 crore).

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First Published: Aug 01 2001 | 12:00 AM IST

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