The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) accounts for the quarter ended June 30, 2011 at its meeting held in Mumbai on Tuesday, July 19, 2011. The accounts have been subjected to a limited review by the Bank’s statutory auditors.
Profit & Loss Account: Quarter ended June 30, 2011
For the quarter ended June 30, 2011, the Bank’s total income was 7,098.0 crore, an increase of 31.2% over 5,410.6 crore for the quarter ended June 30, 2010. Net revenues (net interest income plus other income) were 3,968.0 crore for the quarter ended June 30, 2011, as compared to 3,391.6 crore for the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended June 30, 2011 grew by 18.6% to 2,848.0 crore, in line with the growth in average assets and a Net Interest Margin of 4.2% for the quarter ended June 30, 2011.
Other income (non-interest revenue) for the quarter ended June 30, 2011 was at 1,120.0 crore, primarily contributed by fees and commissions of 922.7 crore (up 15.9% over 796.3 crore in the quarter ended June 30, 2010) and foreign exchange/derivative revenues of 230.1 crore (up 33.9% over 171.8 crore in the quarter ended June 30, 2010). Given the increase in bond yields the Bank incurred a loss on revaluation/sale of investments of 41.3 crore for the quarter ended June 30, 2011 as compared to a gain of 21.5 crore for the quarter ended June 30, 2010. Operating expenses for the quarter ended June 30, 2010 were up 17.8% to 1,934.6 crore. The core cost to income ratio for the quarter was, therefore, at 48.3% as compared to 48.7% at the end of June 2010.
On account of the improvement in asset quality, provisions and contingences reduced from 555.0crore for the quarter ended June 30, 2010 to 443.7 crore for the quarter ended June 30, 2011. Profit before tax for the quarter ended June 30, 2011 increased by 33.2% over the corresponding quarter ended June 30, 2010 to 1,589.7 crore. After providing 504.7 crore for taxation, the Bank earned a Net Profit of 1,085.0 crore, an increase of 33.7% over the corresponding quarter ended June 30, 2010.
The Bank’s total balance sheet size increased by 22.6% to touch 285,942 crore as of June 30, 2011. Gross advances touched 176,964 crore – a year on year growth of 29.1% adjusted for short-term one off wholesale loans outstanding as of June 30, 2010, and a quarter on quarter increase of 9.7% over March 31, 2011. Retail loans grew by 28.6% over June 30, 2010 to 83,863 crore. Total deposits increased by 28,118 crore to 211,151 crore. During the quarter the Bank also raised 3,650 crores of Tier II capital by issuing Upper Tier II bonds. With Savings account deposits at 64,785 crore and Current account deposits at 38,811 crore, the CASA mix as of June 30, 2011 was 49.1%.
The Bank’s total Capital Adequacy Ratio (CAR) as at June 30, 2011 (computed as per Basel 2 guidelines) was at 16.9%, as against the regulatory minimum of 9%. Tier-I CAR was 11.4% as of June 30, 2011.
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During the quarter ended June 30, 2011 the Bank opened 125 new branches. This takes the total network of the Bank to 2,111 branches and 5,998 ATMs in 1,111 cities, as against 1,725 branches and 4,393 ATMs in 780 cities as of June 30, 2010.
Portfolio quality as of June 30, 2011 remained healthy with gross non-performing assets (NPAs) at 1.04% of gross advances and net non-performing assets at 0.18% of net advances (as against 1.21% gross NPA and 0.28% net NPA ratios as of June 30, 2010). The Bank’s provisioning policies for specific loan loss provisions remained higher than the minimum regulatory requirements. The NPA provision coverage ratio (excluding write-offs, technical or otherwise) was
at 83% as of June 30, 2011. Total restructured assets, were 0.4% of the bank’s gross advances as of June 30, 2011. Of this, amounts categorized as standard assets were 0.2% of the bank’s gross advances.
Subdivision (split) of the bank's equity shares
The shareholders of the Bank, at its Annual General Meeting held on July 06, 2011 approved the sub-division (split) of one equity share of the Bank having a nominal value of 10 each into five equity shares of nominal value 2 each. The record date for the same was July 16, 2011.