HDFC Bank net jumps 32%
HDFC Bank said its net profit rose 31.65 per cent to Rs 818.50 crore, as control on expenditure and lower provisions helped it offset the fall in income.
While the bank’s total income fell, its net interest income rose 12.4 per cent to Rs 2,224 crore due to an increase in the asset base and an improvement in net interest margins.
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Other income, which accounted for more than a quarter of the revenue, however, declined as the country’s second-largest private sector bank took a Rs 26.5-crore hit on its bond portfolio due to rising yields. In the third quarter of 2008-09, it had earned Rs 232 crore through revaluation and sale of investments.
HDFC Bank’s loan book expanded 21 per cent to Rs 119,613 crore from Rs 98,784 crore a year ago. And, with the bank managing to attract low-cost deposits, the net interest margin rose to 4.3 per cent compared with 4.2 per cent a year ago. The share of low-cost current account and savings account (Casa) balances in total deposits was 49 per cent at the end of December 2009 compared with 40 per cent a year ago.
A 15.81 per cent decline in non-tax provisions due to an improvement on the sticky debt front also helped the bank. “The worst is behind us from the non-performing asset formation point of view,” said HDFC Bank Executive Director Paresh Sukhtankar. He said there was a slowdown in incremental bad debt formation, as the economy was performing well and the legacy assets of Centurion Bank of Punjab, which was merged with HDFC Bank last year, had been dealt with. The merger helped the bank keep costs under check, with the result that its operating expenses fell 0.5 per cent.
| BOOKMARK Performance in quarter ended December | ||||||||||
| (In Rs crore) | HDFC Bank | IDBI Bank | Axis Bank | UCO Bank | IndusInd Bank | |||||
| 2009 | % Chg | 2009 | % Chg | 2009 | % Chg | 2009 | % Chg | 2009 | % Chg | |
| Interest earned | 4035 | -9.71 | 4008 | 23.42 | 2884 | -3.39 | 2375 | 11.70 | 703 | 12.02 |
| Other income | 853 | -9.20 | 426 | 59.98 | 988 | 34.95 | 234 | -23.91 | 116 | -12.81 |
| Total income | 4888 | -9.62 | 4433 | 26.19 | 3872 | 4.16 | 2609 | 7.20 | 819 | 7.68 |
| NII | 2224 | 12.36 | 719 | 39.21 | 1349 | 45.12 | 628 | 39.40 | 238 | 103.89 |
| Net profit | 819 | 31.65 | 287 | 28.98 | 656 | 30.97 | 246 | 43.23 | 88 | 95.38 |
| Gross NPAs | 1974 | 3.28 | 2317 | 44.79 | 1174 | 48.95 | 1483 | 0.55 | 258 | -2.28 |
| Net NPAs | 544 | -11.45 | 1554 | 60.21 | 430 | 25.62 | 657 | -14.75 | 129 | -31.32 |
| % of gross NPAs | 1.63 | 2.07 | 1.23 | 2.01 | 1.34 | |||||
| % of net NPAs | 0.50 | 1.40 | 0.46 | 0.89 | 0.67 | |||||
| Note: Per cent change over Dec 2008 Source : BSE | ||||||||||
Axis Bank net profit up 31%
Axis Bank registered 31 per cent rise in net profit to Rs 655.98 core on the back of net interest income, fee income and treasury operations. The country’s third-largest private bank earned Rs 170 crore trading profit despite hardening of bond yields. Its net interest margin rose 50 basis points to 4 per cent.
The bank was aiming for a net interest margin of 3.5 per cent for 2009-10 compared with 3.3 per cent a year ago, Somnath Sengupta, chief financial officer, said. The net interest margin for April-December was 3.63 per cent.
Despite a mere 12.53 per cent loan growth, the net interest income grew 45 per cent to Rs 1,349 crore due to a 208-basis-point fall in cost of deposits.
“The rise in the net interest margin was on account of a rise in the share of demand deposits, reduction in cost of term deposits and the impact of equity issued in September 2009,” said the bank.
The bank’s Casa (low-cost) deposits constituted 45 per cent of the total deposits, up from 38 per cent a year ago. The bank is looking at a Casa of 40 per cent. Its overall deposit growth was only 7.7 per cent.
The bank is expecting an increase in credit offtake. “If the industry’s credit growth is 15 per cent for 2009-10, we hope to do better than that,” Sengupta said.
“Of the various portfolios we have under retail assets, mortgages look very attractive because the real estate market is picking up. There is also an opportunity in passenger vehicles,” he said.
Net and gross non-performing assets rose marginally. “Delinquencies in personal loans and credit cards are plateauing. The incremental portfolio is getting healthier, as we are lending judiciously. Credit quality is under control. We added only Rs 87 crore restructured assets this quarter,” Sengupta said.
The bank increased provisioning for bad loans from Rs 132 crore to Rs 373 crore and, as a result, its provision coverage ratio improved to 69 per cent from 63 per cent in September-end.
IDBI Bank profit rises 29%
IDBI Bank posted 29 per cent rise in net profit to Rs 287 crore as against Rs 223 crore during October-December 2008.
The public sector lender’s net interest income, reflecting revenues from core activity, grew 43 per cent from Rs 503 crore to Rs 719 crore.
The fall in yield on advances was less compared to the sharp dip in cost of funds, which dropped to 7.36 per cent from 9.11 per cent in the corresponding period of 2008-09. The bank’s yield on advances declined to 10.37 per cent from 11.18 per cent a year ago, said Chief Financial Officer P Sitharam.
Fee-based income rose 48 per cent to Rs 350 crore, while gross non-performing assets rose 45 per cent to Rs 2,317.47 crore from Rs 1,600.58 crore a year ago. The bank made Rs 170 crore provisions for slippages in loans to small and medium enterprises and the agriculture sector.
Deposits rose 77 per cent from Rs 80,803 crore to Rs 142,798 crore and advances increased 21 per cent to Rs 111,262 crore compared to Rs 92,192 crore at the end of December 2008. Sitharam said the bank had scaled down its growth estimate