HDFC Bank net revenues grow 24%

Leading private sector bank, HDFC Bank Limited, has registered a 24% growth in its net for the year ended March 31.

The bank?s total income for the quarter ended March 31, 2011, was Rs 6,724.3 crores. Net revenues (net interest income plus other income) at Rs 4,095.2 crores for the quarter ended March 31, 2011 increased by 24.0% over Rs 3,302.1 crores for the corresponding quarter ended March 31, 2010.

Net interest income (interest earned less interest expended) for the quarter ended March 31, 2011 was Rs 2,839.5 crores as against Rs 2,351.4 crores for the quarter ended March 31, 2010. This was driven by loan growth of 27.1% and a core net interest margin for the quarter of 4.2%.

Other income (non-interest revenue) for the quarter ended March 31, 2011 was Rs 1,255.8 crores up 32.1% over that in the corresponding quarter ended March 31, 2010.

The main contributor to other income for the quarter was fees & commissions of Rs 1,000.6 crores, up by 23.2% over `812.5 crores in the corresponding quarter ended March 31, 2010. The other major component of other income was foreign exchange & derivatives revenue of Rs 245.4 crores as against Rs 180.1 crores for the corresponding quarter of the previous year.

The bank earned a profit of Rs 8.6 crores on revaluation / sale of investments for the quarter ended March 31, 2011 as against a loss of Rs 47.3 crores in the quarter ended March 31, 2010.

Operating expenses for the quarter were Rs 1,998.4 crores, an increase of 24.3% over Rs 1,607.8 crores during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was stable at 48.8% as against 48.7% for the corresponding quarter ended March 31, 2010.

Provisions and contingencies were Rs 431.3 crores (including specific loan loss and floating provisions of Rs 330.1 crores) for the quarter ended March 31, 2011 as against Rs 439.9 crores (including specific loan loss and floating provisions of Rs 322.8 crores) for the corresponding quarter ended March 31, 2010. After providing Rs 550.8 crores for taxation, the

Bank earned a Net Profit of Rs 1,114.7 crores, an increase of 33.2% over the quarter ended March 31, 2010.

For the year ended March 31, 2011, the Bank earned total income of Rs 24,263.4 crores. Net revenues for the year ended March 31, 2011 were Rs 14,878.3 crores, up by 20.3% over Rs 12,369.5 crores for the year ended March 31, 2010.

The bank?s net profit for year ended March 31, 2011 was Rs 3,926.4 crores, up 33.2%, over the year ended March 31, 2010. Consolidated net profit for the Bank increased by 32.9% to Rs 3,992.5 crores for the year ended March 31, 2011.

The bank?s total balance sheet size increased by 24.7% from Rs 222,459 crores as of March 31, 2010 to Rs 277,353 crores as of March 31, 2011. Total net advances as of March 31, 2011 were Rs 159,983 crores, an increase of 27.1% over March 31, 2010.

Total deposits were at Rs 208,586 crores, an increase of 24.6% over March 31, 2010. Savings account deposits grew 27.2% over the previous year to reach Rs 63,448 crores, while current account deposits at Rs 46,460 crores, registered a growth of 24.8% over the same period.

Adjusting current account deposits for one-offs at year end the core CASA ratio was at 51% of total deposits as at March 31, 2011.

The bank?s total Capital Adequacy Ratio (CAR) as at March 31, 2011 (computed as per Basel II guidelines) stood at 16.2% as against 17.4% as of March 31, 2010 and against the regulatory minimum of 9.0%. Tier-I CAR was 12.2% as of March 31, 2011.

During the year 74.8 lac shares were allotted by the bank on the exercise of options granted earlier under various employee stock option plans. As a result, equity share capital increased by `7.5 crores and reserves (share premium) by Rs 820.7 crores.

The Board of Directors recommended an enhanced dividend of Rs 16.50 per share for the year ended March 31, 2011, as against Rs 12.0 per share for the previous year. This would be subject to approval by the shareholders at the next annual general meeting.

Asset quality continued to remain healthy with gross non-performing assets as on March 31, 2011 at 1.1% of gross advances as against 1.4% at the end of the previous year. The ratio of net non-performing assets to net advances as of March 31, 2011 was at 0.2%, down from 0.3% as at March 31, 2010.

The Bank?s provisioning policies for specific loan loss provisions remained higher than regulatory requirements. The NPA coverage ratio based on specific provisions (not including write-offs, technical or otherwise) was at 82.5% as on March 31, 2011 while that on March 31, 2010 was 74.8%.

Total restructured loans (including applications received and under process for restructuring) were at 0.4% of gross advances of which 0.1% were restructured loans classified as NPAs as on March 31, 2011.

The Board of Directors considered and approved the sub-division (split) of one equity share of the Bank having a nominal value of Rs 10 each into five equity shares of nominal value of Rs 2 each.