HDFC BANK = RESULTS = FOR Q3 FY 2011 = QTR ENDING DECEMBER,2010 = NET PROFIT UP 32.91% = EXCELLENT NUMBERS =

HDFC Bank Limited

NSE Symbol   HDFCBANK

FINANCIAL RESULTS:

Quarter ended December 31, 2010

HDFC BANK has declared stellar results for q/e December, 2010.

Total income : for the quarter ended December 31, 2010 was Rs.6,357.8 crores as against Rs.4,933.9 crores for the quarter ended December 31, 2009.

Net revenues (net interest income plus other income) were Rs. 3,904.5 crores for the quarter ended December 31, 2010, an increase of 25.0% over Rs.3,123.0 crores for the corresponding quarter of the previous year.

Interest earned (net of loan origination costs and amortization of premia on investments held in the Held to Maturity (HTM) category) increased from Rs.4,034.8 crores in the quarter ended December 31, 2009 to Rs.5,230.0 crores in the quarter ended December 31, 2010.

Net interest income (interest earned less interest expended) for the quarter ended December 31, 2010 grew by 24.9% to Rs. 2,776.7 crores, driven by asset growth and a net interest margin (NIM) of 4.2% for the quarter ended December 31, 2010 which remained stable on a sequential basis.

Other income (non-interest revenue) for the quarter ended December 31, 2010 was at Rs.1,127.8 crores, primarily contributed by fees and commissions of ` 942.8 crores, up 22.5% over Rs.769.7 crores during the quarter ended December 31, 2009.

The other two components of other income were foreign exchange & derivative revenues of ` 216.8 crores (Rs.154.3 crores for the corresponding quarter ended December 31, 2009) and a loss on sale / revaluation of investments of ` 30.7 crores (loss of Rs.26.5 crores for the corresponding quarter of the previous year).

Operating expenses, for the quarter ended December 31, 2010 were up 22.2% to Rs.1,831.8 crores. The core cost to income ratio was at 46.5% as against 47.6% for the quarter ended December 31, 2009.

Provisions and contingences increased by 4.1% from Rs.447.7 crores (including loan loss provisions of  Rs.437.9 crores) for the quarter ended December 31, 2009 to Rs.465.9 crores (including loan loss provisions of  Rs. 292.9 crores) for the quarter ended December 31, 2010.

Profit before tax for the quarter ended December 31, 2010 increased by 36.6% over the corresponding quarter ended December 31, 2009 to Rs.1,606.8 crores.

NET PROFIT : After providing Rs.519.0 crores for taxes, the Bank earned a Net Profit of Rs.1,087.8 crores, an increase of 32.9% over the corresponding quarter ended December 31, 2009.

Balance Sheet: As of December 31, 2010

The Bank’s total balance sheet size increased by 22.1% to ` 249,820 crores as of December 31, 2010.

Total deposits were Rs.192,202 crores, up by 24.2% over December 31, 2009.

CASA mix at 50.5% of total deposits as at December 31, 2010 was primarily driven by a 30.7% growth in savings deposits to Rs.61,038 crores as at December 31, 2010.

Gross advances grew by 32.7% over December 31, 2009 to  Rs.160,619 crores.

Nine Months ended December 31, 2010

For the nine months ended December 31, 2010, the Bank earned total income of  Rs.17,539.1 crores as against Rs.15,152.0 crores in the corresponding period of the previous year.

Net revenues (net interest income plus other income) for the nine months ended December 31, 2010 increased by Rs. 1,715.6 crores to Rs.10,783.1 crores.

Net Profit for the nine months ended December 31, 2010 was ` 2,811.7 crores, up by 33.1% over the corresponding nine months ended December 31, 2009.

Capital Adequacy:

The Bank’s total Capital Adequacy Ratio (CAR) as at December 31, 2010 (computed as per Basel 2 guidelines) remained strong at 16.3%, against the regulatory minimum of 9%. Tier-I CAR was 12.1% as of December 31, 2010.

DISTRIBUTION NETWORK :

As of December 31, 2010, the Bank’s distribution network was 1,780 branches and 5,121 ATMs in 833 cities as against 1,725 branches and 3,898 ATMs in 771 cities as of December 31, 2009.

ASSET QUALITY :

Portfolio quality as of December 31, 2010 remained healthy with gross nonperforming assets (NPAs) at 1.1% of gross advances and net non-performing assets at 0.2% of net advances (as against 1.6% gross NPA and 0.5% net NPA ratios as of December 31, 2009). The Bank’s provisioning policies for specific loan loss provisions remained higher than regulatory requirements. The NPA provision coverage ratio (excluding write-offs, technical or otherwise) was at 81% as of December 31, 2010 as compared to 72% as of December 31, 2009. Total restructured assets were 0.3% of the bank’s gross advances as of December 31, 2010.

RESULTS TABLE :

HDFC BANK	31-Dec-10	30-Sep-10	30-Jun-10	31-Mar-10	31-Dec-09
Interest on Advances	395038	367318	331052	303139	303892
DIF %1	3950	7.55	19.33	30.32	29.99
Income on Investments	122583	110026	105322	100811	98016
DIF %2	1226	11.41	16.39	21.6	25.06
Income on Balances With RBI	5171	3546	4227	1231	1201
Others	204	110	1414	130	372
Interest Earned	522996	481000	442015	405311	403481
Other Income	112782	96070	93988	90355	85301
Total Income	635778	577070	536003	495666	488782
DIF %3	6358	10.17	18.61	28.27	30.07
Interest Expended	245327	228372	201901	170175	181090
NII	277669	252628	240114	235136	222391
DIF %4	2777	9.91	15.64	18.09	24.86
Employees Cost	72505	71057	66707	59716	57859
Other Operatng Expenses	110677	96931	92524	96338	87463
Operatng Expenses	183182	167988	159231	156054	145322
Operating Profit	207269	180710	174871	169437	162370
DIF %5	2073	14.7	18.53	22.33	27.65
Provisions	46587	45448	55502	43991	44772
Tax Expense	51899	44048	38198	41784	35748
Net Profit	108783	91214	81171	83662	81850
DIF %6	1088	19.26	34.02	30.03	32.91
Face Value (in Rs.)	10	10	10	10	10
Paid-up Equity	46433	46260	45969	45774	45524
Dividend (%)	-	-	-	120	-
Capital Adequacy Ratio	16.3	17	16.3	17.4	18.3
Basic EPS	23.5	19.8	17.7	18.3	18.7
Diluted EPS	23.1	19.5	17.4	18.1	18.4
Gross/Net NPA	33067	40854	41251	39205	54401
% of Gross/Net NPA	0.2	0.3	0.3	0.3	0.5
Return on Assets	0.4	0.4	0.4	0.4	0.4
Public holding (%)	76.6	59	76.4	76.3	76.1

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