Monday, April 25, 2011

HDFC Bank vs AXIS Bank = RESULTS COMPARISON = Q 4 vs Q3 FY 2011 = Execellent Performers = AXIS ON FASTER GROWTH = CATCHES UP WITH HDFC BANK = FUTURE EXCITING FOR BOTH


HDFC BANK vs AXIS BANK

Q4 vs Q3 FY 2011 RESULTS

COMPARISON

India’s TOP 3 Private sector Banks always make for an interesting study. 

While size-wise, ICICI Bank is No.1, HDFC Bank is No.2 and Axis Bank is No.3; performance- wise, HDFC Bank is No.1, Axis Bank is No.2 and ICICI Bank is No.3 on most of the parameters of growth, for many quarters now.

Axis and HDFC Bank compete well on many parameters almost equally, though, HDFC Bank  has managed to be no.1 in terms of growth drivers, till last quarter.

How do Axis and HDFC Bank compare in Q4 FY 2011 VERSUS Q3 FY 11? This makes for an interesting study.

Size-wise, HDFC Bank continues to be higher than Axis Bank as can be seen from the table below in respect of the Q4 and Q3 performances

Interest on Advances : Axis Bank in Q4 stands at Rs.     3062.64 cr while HDFC Bank stands at Rs.4150.93 cr . But, Growth% of Q4 over Q3 has been 17.77% for Axis Bank, and just 5.08% for HDFC Bank.

Income on Investments    : Axis Bank stands at Rs.1213.06 cr while HDFC Bank stands almost at same level at Rs.1296.58 cr. But, Growth% of Q4 over Q3 has been 3.96% for Axis Bank, and 5.77% for HDFC Bank.

Total Income : Axis Bank stands at Rs.5817.06 cr and HDFC Bank stands at Rs.6724.31 cr. But, Growth% of Q4 over Q3 has been 16.67% for Axis Bank, and 5.77% for HDFC Bank.

Operating Profit : Axis Bank stands at Rs.1820.81 cr while HDFC Bank stands at Rs.2096.86 cr. But, Growth% of Q4 over Q3 has been 9.79% for Axis Bank, and only 1.17% for HDFC Bank.

Profit  before tax      : Axis stands at  Rs.1566.42 cr; while HDFC Bank stands at Rs.1665.52 cr . But, Growth% of Q4 over Q3 has been 16.5% for Axis Bank, and only 3.65% for HDFC Bank.

Net Profit : Axis stands at Rs.1020.11 cr; while HDFC Bank stands at 1114.71 cr. But, Growth% of Q4 over Q3 has been 14.44% for Axis Bank, and only 2.47% for HDFC Bank. The difference in Net profit is very marginal now between these two efficient performers.

Capital Adequacy Ratio     : Axis stands at 12.65; but HDFC Bank has a higher 16.2. It is to be seen whether Axis will raise funds – in near future.

Basic EPS in Q4 stands at Rs.24.87 for Axis Bank and at Rs.24 for HDFC Bank. The same was Rs.21.77 in Q3 for Axis Bank and Rs.23.5 for HDFC Bank. It appears that, for the first time in several quarters – Axis Bank has actually overtaken HDFC Bank comfortably in respect of this important parameter.

While % of Gross/ net NPAs is almost same for both, the return on assets for Axis bank is higher. Its Equity Base of Axis stands at Rs. 410.55 cr, against HDFC Bank’s Rs.465.23, thus resulting in higher EPS on the same level of Net Profit.

Overall – now, both these efficient Banks seem to be on an equal footing – and hence, future performances will be much more interesting between the two. Both are on a High Growth track, as always. But, Axis seems to be catching up faster than ever.

Both Banks, seem to deserve equal rating at the hands of the Market now.

Readers are invited to offer their comments, suggestions, corrections etc, as always. The 2 banks’ performance in Q4 has been individually covered earlier in this Blog.


AXIS
HDFC
AXIS
HDFC
I T E M
31-Mar-11
31-Mar-11
31-Dec-10
31-Dec-10
Interest on Advances
306264
415093
260055
395038
Growth% of Q4 over Q3


17.77
5.08
Income on Investments
121306
129658
116683
122583
Growth% of Q4 over Q3


3.96
5.77
Interest Earned
436666
546855
383831
522996
Other Income
145040
125576
114771
112782
Total Income
581706
672431
498602
635778
Growth% of Q4 over Q3


16.67
5.77
Interest Expended
266566
262908
210519
245327
Employees Cost
39602
73335
39616
72505
Other Operating Expenses
93457
126502
82619
110677
Operating Expenses
133059
199837
122235
183182
Operating Profit
182081
209686
165848
207269
Growth% of Q4 over Q3


9.79
1.17
Provisions
25439
43134
31388
46587
Profit  before tax
156642
166552
134460
160682
Growth% of Q4 over Q3


16.5
3.65
Tax Expense
54631
55081
45324
51899
Net Profit
102011
111471
89136
108783
Growth% of Q4 over Q3


14.44
2.47
Face Value(in Rs.)
10
10
10
10
Paid-up Equity
41055
46523
40990
46433
Capital Adequacy Ratio
12.65
16.2
12.46
16.3
Basic EPS
24.87
24
21.77
23.5
% of Gross/Net NPA
0.26
NA
0.29
0.2
Return on Assets
1.81
NA
1.75
0.4
Public holding (%)
53.6
NA
53.63
76.6

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