HDFC Bank posted a 32.7 per cent jump in net profit in the second quarter of this financial year over the corresponding quarter ended September 30, 2009. The bank had a Profit after Tax (PAT) of Rs 912.1 crore in the July-September quarter of the current financial year. The Bank’s total income for the quarter ended September 30, 2010 was Rs 5,770.7 crore as against Rs 5,045.4 crore for the quarter ended September 30, 2009. Net revenues (net interest income plus other income) were Rs 3,487.0 crore for the quarter ended September 30, 2010, an increase of 15.9 per cent over Rs 3,009.3 crore for the corresponding quarter of the previous year.
Interest earned (net of loan origination costs and amortization of premia on investments held in the Held to Maturity (HTM) category increased from Rs 3,991.9 crore in the quarter ended September 30, 2009 to Rs 4,810.0 crore in the quarter ended September 30, 2010. Net interest income (interest earned less interest expended) for the quarter ended September 30, 2010 grew by 29.2 per cent to Rs 2,526.3 crore, driven by average asset growth of 30.0 per cent and a stable net interest margin (NIM) of 4.2 per cent which was also the NIM for the quarter ended September 30, 2009.
Other income (non-interest revenue) for the quarter ended September 30, 2010 was at Rs 960.7 crore, primarily contributed by fees and commissions of Rs 857.0 crore up 16.0 per cent over Rs 738.6 crore in the quarter ended September 30, 2009. Effective April 01, 2010, the Bank has classified fees paid relating to transactions done by the bank’s customers on other banks’ ATMs, which hitherto were netted from fees and commissions, under operating expenses. The other two components of other income were foreign exchange & derivative revenues of Rs 152.3 crore and a profit/loss on sale/revaluation of investments of Rs 52.1 crore, as against Rs 151.0 crore and Rs 162.9 crore respectively, for the corresponding quarter ended September 30, 2009.
Operating expenses, reclassified as mentioned above, for the quarter ended September 30, 2010 were up 18.6 per cent to Rs 1,679.9 crore. The core cost to income ratio (excluding bond gains/losses) was at 47.5 per cent as against 49.8 per cent for the quarter ended September 30, 2009. On account of the improvement in asset quality, reflected in the ratio of gross non-performing assets to gross advances reducing from 1.8 per cent as of September 30, 2009 to 1.2 per cent as of September 30, 2010, provisions and contingences reduced from Rs 594.1 crore for the quarter ended September 30, 2009 to Rs 454.5 crore (including loan loss provisions of Rs 445.0 crore) for the quarter ended September 30, 2010.
Profit before tax for the quarter ended September 30, 2010 increased by 35.4 per cent over the corresponding quarter ended September 30, 2009 to Rs 1,352.6 crore.
HDFC Bank shares closed down 1.36 per cent at Rs 2365.60 on the Bombay Stock Exchange on Tuesday.
