Monday, July 19, 2010

HDFC BANK VS AXIS BANK = Q1 FY2011 RESULTS = COMPARISON = GREAT PERFORMANCE BY BOTH = EXCELLENT FUTURE GROWTH


HDFC BANK
Q/E JUNE2010 RESULTS

COMPARISON WITH PREVIOUS & CORRESPONDING Quarters
& also with

AXIS BANK

HDFC Bank has declared its quarterly results for the Q/E 30th, June,2010. These are compared below with previous quarters results below. HDFC Bank is considered the No.1 private bank on many parameters – other than sheer size in which ICICI Bank is the Biggest. Axis Bank is considered the No.2 private Bank on the same parameters. But, both the banks have been performing EXCELLENTLY, quarter after quarter, for a number of quarters now.
It is therefore considered to be more informative to compare the first quarter results of these 2 banks on the crucial parameters.
The results of Axis Bank were earlier examined in a previous Blog post  under the URL :
Readers can also see the same.
In the figures given in the table below – first 4 columns represent figures of HDFC Bank while last 3 columns represent Figures of Axis bank.
For convenience of presentation, the latest quarter (Q1 FY11) figures are given for both banks and the same are compared with the preceding quarter of Q4 FY10 figures in column titled  “dif%1” – and further compared with the corresponding quarter of Q1 FY2010 in the column titled “dif%2” – Both as difference percentages. The June2010 figures in the table below are in lakhs but are reduced in notes below to Crores of rupees.

COMPARISON

Interest on Advances of HDFC Bank for Q1 FY11 is Rs.3311 Cr – which is higher to preceding Qtr by 9.2% and to corresponding Qtr (Q1 FY10) by 9.7%.The same for Axis Bank is Rs.2311 Cr – which is higher than previous quarter by 11.4% and by 17.1% compared to corresponding Qtr (Q1 FY10).
Income on Investments     for HDFC Bank is Rs.1053 Cr – which is higher by 4.5% compared to previous Qtr and by 1.9% compared to corresponding Qtr.  For Axis bank, the figures are Rs.935 Cr which is higher by 9.3% compared to previous qtr and by 7.8% compared to corresponding qtr.
Total Income for HDFC Bank is Rs.5360 Cr, which is higher by 8.1% compared to previous Qtr and by 4.3% compared to corresponding Qtr. For Axis Bank, the figure is Rs.4326 Cr – which is higher by 10.3% compared to previous Qtr and by 12% compared to corresponding Qtr.
Interest Expended for HDFC Bank is Rs.2019 Cr – which is higher by 18.6% compared to previous Qtr but LOWER by 9.8% compared to corresponding Qtr.  For Axis Bank, the figures are Rs.1812 Cr which is higher by 18.5% compared to previous Qtr but LOWER by 2.6% compared to corresponding Qtr.
Total Expenditure excluding provisions etc for HDFC Bank is Rs.3611Cr, which is higher by 10.7% compared to previous Qtr but lower by 0.2% compared to corresponding Qtr. The figures for Axis Bank are Rs.2876 Cr, which is higher by 13.3% compared to preceding Qtr and higher by 7% compared to corresponding Qtr.
Operating Profit   for HDFC Bank is Rs.1749 Cr, which is higher by 3.2% compared to previous Qtr and higher by 15.1% compared to corresponding Qtr. The figures for Axis Bank are Rs.1450 Cr, which is higher by 4.8% compared to previous Qtr and by 23.3% compared to corresponding Qtr.
Net Profit  level performance is interesting. HDFC’s Net profit is Rs.812 Cr, which is down from previous Qtr by 3% but up by a Huge 33.9% compared to Corresponding Qtr.  Axis Bank’s Net profit is Rs.742 Cr, which is also down by the same 3% compared to previous Qtr, but up by a HUGE of 32% compared to corresponding Qtr.
Paid-up Equity is – for HDFC Bank : Rs.459.69 Cr and For Axis Bank : Rs.407.44 Cr.
Capital Adequacy Ratio is 16.3 for HDFC Bank and 14.54 for Axis Bank.
Basic EPS for HDFC Bank is Rs.17.7, down by 3.3% compared to previous Qtr and up by 24.6% compared to corresponding Qtr. Basic EPS for Axis Bank is Rs.18.26 which is lower by 3.5% compared to previous Qtr and Up by 16.8% compared to corresponding Qtr.
% of Gross/Net NPA for HDFC Bank is 0.3 and the same for Axis Bank is 0.35.
Return on Assets for HDFC Bank is 0.4  where as the same is higher for Axis Bank at 1.63.
Public Shareholding  in HDFC Bank is at 76.4% whereas, the same is at 54.51% for Axis Bank.
SUMMARY :  Performance-wise – both the Banks seem to have again confirmed their relative status as No.1 and 2 private Banks, in almost all parameters.  Both are having excellent growth Plans for future.
However, HDFC Bank share price is currently quoting much higher at  Rs.2061, while the share price of Axis bank is around Rs.1356. Thus, there is a huge Price to Earnings differential. Axis bank has a lower PE Ratio and therefore – if performance continues as in Q1 for both Banks, Axis Bank has greater scope for price appreciation on a comparative basis. However, Both banks are excellent Growth stocks – considering their last 3 years performance and could yield good value for any one’s Portfolio.
Note : As always – any suggestions, opinions and CORRECTIONS from readers will be acknowledged very gratefully.

RESULTS IN FIGURES :

Jun-10
dif%1
dif%2
10-Jun
dif%1
dif%2
Interest on Advances
331052
9.2
9.7
231089
11.4
17.1
Income on Investments
105322
4.5
1.9
93526
9.3
7.8
Income on Balances With RBI
4227
243.4
19
3248
19.4
-8.3
Others
1414
987.7
120.9
4696
55.1
60.5
Interest Earned
442015
9.1
8
332559
11.3
14.5
Other Income
93988
4
-9.9
100078
7.2
4.4
Total Income
536003
8.1
4.3
432637
10.3
12
Interest Expended
201901
18.6
-9.8
181182
18.5
-2.6
Employees Cost
66707
11.7
19.3
41642
24.8
34.6
Other OprtgExpenses
92524
-4
12.7
64808
-4.1
25
Operating Expenses
159231
2
15.3
106450
5.4
28.6
Total Exp.excl prov.
361132
10.7
-0.2
287632
13.3
7
Operating Profit
174871
3.2
15.1
145005
4.8
23.3
Provisions
55502
26.2
-15.8
33300
65
5.6
P B T
119369
-4.8
38.8
111705
-5.5
29.7
Tax Expense
38198
-8.6
50.6
37517
-10
25.5
P A T
81171
-3
33.9
74188
-3
32
Net Profit
81171
-3
33.9
74188
-3
32
Face Value
10
0
0
10
0
0
Paid-up Equity
45969
0.4
7.9
40744
0.6
13.3
Dividend (%)
-

-

Capital Adequacy Ratio
16.3
-6.3
5.8
14.54
-8
-4.8
Basic EPS B EI
17.7
-3.3
24.6
18.26
-3.5
16.8
Diluted EPS B EI
17.4
-3.9
23.4
17.95
-3.3
15.8
a) Gross/Net NPA
41251
5.2
41341
-1.3
12.6
b) % of Gross/Net NPA
0.3
0
0.35
-2.8
-14.6
c) Return on Assets
0.4
0
33.3
1.63
-11.9
0
Public Shareholding (%)
76.4
0.1
-5.3
54.51
2.7
8.4

ANNOUNCEMENTS
TO THE EXCHANGE

19-07-2010        Hdfc Bank Limited has informed the Exchange regarding a press release dated July 19, 2010 titled "HDFC Bank Ltd. - Financial Results (Indian GAAP) for the period April to June 2010".
19-07-2010        HDFC Bank Limited has informed the Exchange regarding the standalone Results for the quarter ended on 30-JUN-2010 as follows: Interest earned of Rs. 442015 lacs for the quarter ending on 30-JUN-2010 against Rs. 409310 lacs for the quarter ending on 30-JUN-2009. Interest expended of Rs. 201901 lacs for the quarter ending on 30-JUN-2010 against Rs. 223752 lacs for the quarter ending on 30-JUN-2009. Net Profit / (Loss) of Rs. 81171 lacs for the quarter ending on 30-JUN-2010 against Rs. 60611 lacs for the quarter ending on 30-JUN-2009. -
08-07-2010        Hdfc Bank Limited has informed the Exchange that Bank has issued on a private placement basis Unsecured, Redeemable, Non-Convertible, Subordinated Bonds in the nature of Debentures towards Tier-II Capital as detailed hereunder: 1. Upper Tier II Bonds for an amount aggregating Rs.1105 Crores.  

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