HDFC Bank net up 32% at Rs 1,199 cr on stable asset quality

HDFC Bank announced a net profit of Rs 1,199.3 crore and net revenues of Rs 4,156.2 crore, an increase of 31.5 percent and 19 percent from a year ago, respectively.

The results were largely in line with expectations, with the bank’s shares, up about 2 percent at Rs 487.40 before the announcement, stayed at those levels after the results were released.

The net interest margin - the difference between interest paid and interest received after taking into account other operational expenses - came in at 4.1 percent, while its cost-to-income ratio was48.9 percent, HDFC Bank said in a press release. The net interest margin is a key profitability metric and is expected to remain in the range of 3.9-4.2 percent for the rest of the financial year ending March 2012.

[caption id=“attachment_111568” align=“alignleft” width=“380” caption=“Portfolio asset quality remained healthy, with gross non-performing assets at 1 percent of gross advances and net non-performing assets (NPAs) at 0.2 percent of net advances. Reuters”]  [/caption]

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Portfolio asset quality remained healthy, with gross non-performing assets at 1 percent of gross advances and net non-performing assets (NPAs) at 0.2 percent of net advances. In comparison, gross NPAs were 1.2 percent of gross advances, while net NPAs were 0.3 percent of net advances at the end of September 2010.

Gross advances touched Rs 189,917 crore, up 25.6 percent after adjusting for a short-term, one-off wholesale loans outstanding from a year ago. Deposits totalled Rs 230,676 crore, up 18 percent from the same period last year.

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Paresh Sukhtankar, executive director, HDFC Bank, told CNBC 18 that loan growth was driven by ‘core’ retail loans, which jumped 30 percent during the quarter. However, the retail-corporate loan mix remained the same as before, roughly 50:50, he added.

The bank’s current account and savings account (low-cost deposits) accounted for 47.3 percent of total deposits at the end of September.

The bank’s total capital adequacy ratio stood at 16.5 percent, against a regulatory minimum of 9 percent.

For the press release, click here, and for the results table, click here.