HDFC Bank Limited
NSE Symbol HDFCBANK
HDFC BANK has declared good results for the first quarter ending June 2011.
Total income was Rs.7,098.0 crore, an increase of 31.2% over Rs. 5,410.6 crore for the quarter ended June 30, 2010.
Net revenues (net interest income plus other income) were Rs. 3,968.0 crore for the quarter ended June 30, 2011, as compared to Rs.3,391.6 crore for the corresponding quarter of the previous year.
Net interest income (interest earned less interest expended) for the quarter ended June 30, 2011 grew by 18.6% to Rs.2,848.0 crore, in line with the growth in average assets and a Net Interest Margin of 4.2% for the quarter ended June 30, 2011.
Other income (non-interest revenue) for the quarter ended June 30, 2011 was at Rs.1,120.0 crore, primarily contributed by fees and commissions of Rs. 922.7 crore (up 15.9% over Rs.796.3 crore in the quarter ended June 30, 2010) and foreign exchange/derivative revenues of Rs. 230.1 crore (up 33.9% over Rs.171.8 crore in the quarter ended June 30, 2010). Given the increase in bond yields the Bank incurred a loss on revaluation/sale of investments of Rs.41.3 crore for the quarter ended June 30, 2011 as compared to a gain of Rs. 21.5 crore for the quarter ended June 30, 2010.
Operating expenses for the quarter ended June 30, 2010 were up 17.8% to Rs. 1,934.6 crore. The core cost to income ratio for the quarter was, therefore, at 48.3% as compared to 48.7% at the end of June 2010.
On account of the improvement in asset quality, provisions and contingences reduced from Rs. 555.0 crore for the quarter ended June 30, 2010 to Rs. 443.7 crore for the quarter ended June 30, 2011.
Profit before tax for the quarter ended June 30, 2011 increased by 33.2% over the corresponding quarter ended June 30, 2010 to Rs.1,589.7 crore.
After providing Rs.504.7 crore for taxation, the Bank earned a Net Profit of ` Rs.1,085.0 crore, an increase of 33.7% over the corresponding quarter ended June 30, 2010.
The Bank’s total balance sheet size increased by 22.6% to touch Rs. 285,942 crore as of June 30, 2011.
Gross advances touched `Rs.176,964 crore – a year on year growth of 29.1% adjusted for short-term one off wholesale loans outstanding as of June 30, 2010, and a quarter on quarter increase of 9.7% over March 31, 2011.
Retail loans grew by 28.6% over June 30, 2010 to Rs. 83,863 crore.
Total deposits increased by Rs.28,118 crore to Rs. 211,151 crore.
During the quarter the Bank also raised Rs. 3,650 crores of Tier II capital by issuing Lower Tier II bonds.
With Savings account deposits at Rs. 64,785 crore and Current account deposits at `Rs.38,811 crore, the CASA mix as of June 30, 2011 was 49.1%.
Capital Adequacy:
The Bank’s total Capital Adequacy Ratio (CAR) as at June 30, 2011 (computed as per Basel 2 guidelines) was at 16.9%, as against the regulatory minimum of 9%. Tier-I CAR was 11.4% as of June 30, 2011.
NETWORK:
During the quarter ended June 30, 2011 the Bank opened 125 new branches. This takes the total network of the Bank to 2,111 branches and 5,998 ATMs in 1,111 cities, as against 1,725 branches and 4,393 ATMs in 780 cities as of June 30, 2010.
ASSET QUALITY:
Portfolio quality as of June 30, 2011 remained healthy with gross non-performing assets (NPAs) at 1.04% of gross advances and net non-performing assets at 0.18% of net advances (as against 1.21% gross NPA and 0.28% net NPA ratios as of June 30, 2010).
The Bank’s provisioning policies for specific loan loss provisions remained higher than the minimum regulatory requirements.
The NPA provision coverage ratio (excluding write-offs, technical or otherwise) was at 83% as of June 30, 2011. Total restructured assets, were 0.4% of the bank’s gross advances as of June 30, 2011. Of this, amounts categorized as standard assets were 0.2% of the bank’s gross advances.
SUBDIVISION (SPLIT) OF THE BANK’S EQUITY SHARES
The shareholders of the Bank, at its Annual General Meeting held on July 06, 2011 approved the sub-division (split) of one equity share of the Bank having a nominal value of Rs. 10 each into five equity shares of nominal value Rs. 2 each. The record date for the same was July 16, 2011.
SUMMARY OF RESULTS
COMPARISON WITH PREVIOUS QTR (Q4 FY11)
AND ALSO CORRESPONDING QTR (Q1 FY11)
Interest on Advances for Q1 FY 12 is Rs.4514.19 cr – up by 8.75% from Q4 FY11 and up by 36.36% from Q1 FY11.
Income on Investments fir Q1 FY 12 is Rs.1410.70cr – up by 8.8% from Q4 FY 11 and up by 33.94% from Q1 FY 11.
Interest Earned is Rs.5977.97 cr – up by 9.32 % from Q4 FY11; and up by 35.24% from Q1 FY11.
Total Income is Rs.7098 cr – up by 5.56% from Q4 FY 11 and up by 32.42% from Q1 FY 11.
Net Interest Income is Rs.2847.96 cr – up by 0.3% from Q4 FY 11 and up by 18.61% from Q1 FY11.
Operating Profit is Rs.2033.36 cr – down by 3.03% from Q4 FY11 and Up by 16.28% from Q1 FY11.
Provisions stands at Rs.443.66 cr – up by 2.86% from Q4 FY 11 and down by 20.06% from Q1 FY11.
Profit before tax is Rs.1589.70 cr – down by 4.55% from Q4 FY 11 and Up by 33.18% from Q1 FY 11.
Net Profit is Rs.1084.98 cr – down by 2.67% from Q4 FY 11 and Up by 33.67% from Q1 FY 11.
Return on Assets stands at 0.4, same as earlier.
% of Gross/Net NPA is quite Low at 0.2 compared to 0.3 in Q1 FY11.
On a Face Value of Rs.10,the Basic EPS stands impressively at Rs.23.3 – compared to Rs.24 in previous Qtr and Rs.17.7 in corresponding Qtr.With reference to previous quarter, Income has increased impressively - but so has the interest Expended thus keeping NII without increase.NPT is slightly lower compared to preceding Qtr and impressively higher with reference to Corresponding Qtr - up by nearly 34%.
Hopefully - the NII margin will improve in next quarter for HDFC Bank again.
The Results for Q1 FY 2012 are quite impressive compared to corresponding quarter of Q1 FY 2011 - but - not so with reference to the preceding Quarter of Q4 FY 2011.
RESULTS TABLE
| HDFC BANK | 30-Jun-11 | 31-Mar-11 | 30-Jun-10 |
| Interest on Advances | 451419 | 415093 | 331052 |
| Income on Investments | 141070 | 129658 | 105322 |
| Income on Balances With RBI | 2484 | 1864 | 4227 |
| Others | 2824 | 240 | 1414 |
| Interest Earned | 597797 | 546855 | 442015 |
| Other Income | 112003 | 125576 | 93988 |
| Total Income | 709800 | 672431 | 536003 |
| Interest Expended | 313001 | 262908 | 201901 |
| N I I | 284796 | 283947 | 240114 |
| Employees Cost | 78099 | 73335 | 66707 |
| Other Operatng Expenses | 115364 | 126502 | 92524 |
| Operatng Expenses | 193463 | 199837 | 159231 |
| Operating Profit | 203336 | 209686 | 174871 |
| Provisions | 44366 | 43134 | 55502 |
| Profit before tax | 158970 | 166552 | 119369 |
| Tax Expense | 50472 | 55081 | 38198 |
| Net Profit | 108498 | 111471 | 81171 |
| Face Value.Rs | 10 | 10 | 10 |
| Paid-up Equity | 46677 | 46523 | 45969 |
| Capital Adequacy Ratio | 16.9 | 16.2 | 16.3 |
| Basic EPS before EI | 23.3 | 24 | 17.7 |
| Diluted EPS before EI | 23 | 23.7 | 17.4 |
| Gross/Net NPA | 31850 | - | 41251 |
| % of Gross/Net NPA | 0.2 | - | 0.3 |
| Return on Assets | 0.4 | - | 0.4 |
| Public Holding (%) | 76.7 | 0 | 76.4 |
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