HDFC Bank Limited
HDFC Bank Limited is an Indian financial services company based
in Mumbai, Maharashtra.
It was incorporated in 1994.
HDFC Bank is the fifth largest bank in India by assets and the largest
bank by market capitalization as of 1 November 2012. The bank was
promoted by the Housing Development Finance Corporation, a
premier housing finance company (set up in 1977) of India.
As of 31 March 2013, the bank had assets of INR 4.08 trillion.
For the fiscal year 2012-13, the bank has reported net profit of INR
69 billion, up 31% from the previous fiscal year. Its customer base
stood at 28.7 million customers on 31 March 2013.
HDFC Bank, second largest private sector lender in the country,
today said its net profit for the quarter ended June rose a little more
than 30 per cent over the same period last year, to Rs 1,844 crore.
Net interest income, the difference between interest income
and expense, was Rs 4,419 crore, up 21 per cent from a year earlier.
The bank improved its cost-to-income ratio to 47.9 per cent. Stable
asset quality allowed a reduction in provisioning to Rs 527 crore in
the April-June period from Rs 582 crore a year earlier.
Net profit rose 27% to Rs.1,982 crore, or Rs.8.2 per share, in the three
months ended 30 September, from Rs.1,560 crore, or Rs.6.5 per
The earnings were in line with the Rs.1,970 crore profit estimated by
a poll of 38 analysts by Bloomberg.
This is the first instance of the bank’s net profit growing at less than
30% since the quarter ended March 2003.
Net interest margin or the difference between rate of interest
charged on loans and that paid on deposits narrowed 10 basis
points (bps) to 4.3% from 4.4% last year. In the quarter ended June,
the margin was 4.6%.
HEALTHY ASSET OF HDFC
The bank has been able to improve its asset quality consistently, as
reflected inslippages, which declined from 5.2% in FY2009 to 1.0%
Provisions to average assets also declined from 1.2% in FY2009 to
0.5% inFY2012. Importantly the bank has managed to deliver `30%
earnings growth in
FY2012 and 1QFY2013 even after making substantial floating rate
provisions(`945cr in FY2012 and `240cr in 1QFY2013). Going forward
even if specific
credit costs increase to normalised levels, overall provisioning
burden is expected to be manageable due to the buffer created
by these floating provisions.