HDFC Bank Q3 net up 31.28%

HDFC Bank, the country's second largest private sector bank, today reported a 31.28 per cent rise in its net profit to Rs 224 crore for the third quarter ended December 31, 2005, up from Rs 171 crore in the year-ago period, riding on higher fee income and strong loan growth.

The bank said its total income in the third quarter was Rs 1,475.9 crore, more than 50 per cent higher than Rs 979.6 crore a year earlier. 

Its net revenues (net interest income plus other income) was Rs 966.7 crore, an increase of 51 per cent from Rs 640.5 crore a year earlier.

 

CONCRETE SHOW
(Rs crore)	Q3 ended Dec, 31
	2004	2005	% chng
Interest earned	779.03	1179.81	51.44
Other income	200.52	296.13	47.68
Total income	979.55	1475.94	50.67
Interest expended	339.04	509.20	50.19
Operating expenses	278.62	449.12	61.19
Total expenditure	617.66	958.32	55.15
Provision for taxes	77.88	96.07	23.36
Net profit	170.93	224.40	31.28

Net interest income (interest earned less interest expended) for the quarter rose 52.40 per cent to Rs 670.6 crore, driven by average asset growth of 45.4 per cent and a net interest margin of just over 3.9 per cent (against 3.7 per cent a year earlier).

HDFC Bank's other income for the quarter under review also rose by 47.7 per cent to Rs 296.1 crore, consisting primarily of fees and commissions of Rs 275.4 crore and foreign exchange and derivatives revenues of Rs 20.1 crore.

The bank reported a loss of Rs 0.60 crore on sale and revaluation of investments during the third quarter.It said operating expenses for the quarter, at Rs 449.1 crore, were 46.5 per cent of net revenues.

Provisions and contingencies were Rs 293.2 crore (against Rs 191.0 crore for the corresponding quarter ended December 31, 2004), and primarily comprised general and specific loan loss provisions of Rs 138.0 crore.

As on December 31, 2005, total deposits aggregated to Rs 51,195 crore, an increase of 36.8 per cent over Rs 37,429 crore on December 31, 2004.

The bank's total customer assets (including advances and investments in corporate debentures and commercial papers) increased from Rs 28,386 crore as of December 31, 2004, to Rs 42,538 crore as of December 31, 2005.

The bank's gross retail loans grew by 75.6 per cent on a year-on-year basis to Rs 20,659 crore in the third quarter of 2005-06. HDFC Bank shares were down 1.22 per cent at Rs 747.95 on the Bombay Stock Exchange.