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HDFC Bank net rises 30% on retail loans, other income
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HDFC Bank net rises 30% on retail loans, other income

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    HDFC Bank net rises 30% on retail loans, other income HDFC Bank net rises 30% on retail loans, other income Presentation Transcript

    •   powered by bluebytes         Saturday , January 19, 2013   HDFC Bank net rises 30% on retail loans, other income    Publication: DNA , Journalist:Parnika Sokhi    Edition:Bangalore/Ahmedabad/Pune/Mumbai , Page No: 12, Location: Middle­Left , Size(sq.cms): 192     HDFC Bank net rises 30% on retail loans, other  income Parnika Sokhi« MUMBAI  HDFC Bank, second­largest  private sector lender, has re­ ported a 30% year­on­year  growth in its third­quarter net  profit at Rs1,859 crore, mainly  driven by strong loan growth  and other income.  The net interest income  rose 22% and other income  grew 26% as compared to the  year ago period. Fees & com­ missions, main contributors  to other income, were up  24.3% in Q3.  The bank witnessed annual  credit growth of 24% in Q3, with the  retail segment growing 29% and  corporate segment growing 18%.  Paresh Sukthankar, execu­        tive director, HDFC Bank,  said, "Right now, growth in  retail loans has outpaced  corporate segment, but the  roles could reverse over the  next year or two if you have  strong buildu p   i n   c a p e x   demand."  HDFC Bank's deposits  grew at 22.2% over last year  and the current account  savings account (Casa) ratio  stood at 45.4% for Q3. The  bank's net interest margins  (NIMs) were stable at 4.1% at  the end of December 2012.  The gross non­performing  assets (NPAs) ratio was up at  1 % from 0.91 % last quarter and net  NPA ratio was stable at 0.2%.  Sukhtankar said 80% of the  incremental NPAs came from retail.  Within the retail segment,  most of the NPAs came from  the commercial vehicle and  construction equipment  loans.  "In both these products,  the asset that generates  income services the loan.  Therefore, these are cyclical  a n d   i f   t h e  e c o n o m y   i s   growing at 3%  slower than what it was,  naturally the ability to service  the loan gets impacted to  some extent," he said,  adding, higher fuel costs  could be a risk factor, going  ahead.  "Strong traction in fee­ based income growth is posi­ tive while some uptick in NPAs in  absolute terms can be viewed  negative. However, NPAs in  percentage terms remained within  the management guidance," said  Saday Sinha, banking analyst at Ko­ tak Securities.  The bank's provisioning  coverage ratio was at 80% as on  December­end, while restructured  assets stood at 0.3% of the gross  advances and capital adequacy  ratio was at 17%.