Tuesday, October 15, 2013

HDFC BANK - RESULTS FOR - Q2 FY 13-14 SEP 2013 - NET REVENUE UP 18.1%; NET PROFIT UP 27.1%; N-NPA :0.3% - FUTURE EXPECTED TO BE EVEN BETTER



HDFC Bank Limited

FINANCIAL RESULTS (INDIAN GAAP)

FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER30,2013


Total income for the quarter ended September 30, 2013 was Rs.11,937.7 crores, as against Rs.10,146.7 crores, for quarter ended September30, 2012.

Net revenues (net interest income plus other income) were at  Rs.6,320.9crores , an increase of 18.1% for the quarter ended September 30, 2013 as against Rs.5,353.7 crores for the corresponding quarter of the previous year.

Net interest income (interest earned less interest expended) for the quarter ended September 30, 2013 accounted for 71% of net revenues and grew by 15.3% to Rs.4,476.5 crores from Rs.3,881.9 crores for quarter ended September30, 2012.

Net interest margin for the quarter was at 4.3% as against 4.4% for corresponding Quarter ended September30, 2012.

Other income (non-interest revenue) at Rs.1,844.4 crores was 29% of the net revenues for the quarter ended September 30, 2013 and grew by 25.3% over Rs.1,471.8 crores in the  corresponding quarter ended September30, 2012.

The four components of other income for the quarter ended September 30, 2013 were :

Fees & commissions of Rs.1,354.4 crores (Rs.1,220.3 crores in the corresponding quarter of the previous year),

Foreign exchange & derivatives revenue of Rs.501.4 crores (Rs.235.9 crores for the corresponding quarter of the previous year),

Loss on revaluation / sale of investments of  Rs.173.3 crores (loss of  Rs.105.9 crores for the quarter ended September30, 2012) and

Miscellaneous income including recoveries of Rs.161.9 crores (Rs.121.6 crores for the corresponding quarter of the previous year).

Operating expenses for the quarter were Rs.2,934.2 crores, an increase of 9.3% over Rs.2,685.4 crores during the corresponding quarter of the previous year.

The cost-to-income ratio  for the quarter was at 46.4%as against 50.2% for the corresponding quarter ended September 30, 2012.

Provisions and contingencies were Rs.385.9 crores (consisting of specific loan  loss and general provisions) for the quarter ended September 30, 2013 as against Rs.389.9 crores for the corresponding quarter ended September30, 2012.

Profit before tax was Rs.3,000.7 crores, an increase of 31.7%over the quarter ended September30, 2012.

Provision for taxation was Rs.1,018.4 crores, an increase of 41.8% over the quarter ended September 30, 2012 primarily due to increase in income tax surcharge from 5% to 10%.

NET PROFIT, After providing for taxation, was of Rs.1,982.3crores, an increase of  27.1% over the quarter ended September 30, 2012.

Balance Sheet: As of September30, 2013

Advances as of September 30, 2013 were Rs.2,68,617crores, an increase of 16.0% over September30, 2012.

This loan growth was contributed by both segments of the Bank loan portfolio, with retail loans growing by 16.9% and wholesale loans by15.0% resulting in a retail:wholesale loan mix of 53:47.

Total deposits as of September30, 2013 were Rs.3,13,011crores, an increase of 14.2% over september30, 2012.

Savings account deposits grew 17.9% over the previous year to reach Rs.93,285 crores.

The CASA ratio as at September 30, 2013 was 45.0%.

Half Year ended September 30, 013:

For the half year ended September 30, 2013, the Bank earned a total income of  Rs.
23,526.2 crores as against  Rs.19,971.8crores in the corresponding period of the previous year.

Net revenues (net interest income plus other income) for the six months ended September 30, 2013 were Rs.12,665.2 crores, as against  Rs.10,655.5crores for the six months ended September 30, 2012, an increase of 18.9%.

Net profit for the half year ended September 30, 2013was Rs. 3,826.2crores, up by
28.5% over the corresponding six months ended September 30, 2012 .

Capital Adequacy: The Bank’s total Capital Adequacy Ratio (CAR) as at September30, 2013 (computed as per Basel III guidelines) stood at 14.6% as against a regulatory requirement of 9%. Of this, Tier-I CAR was 9.9%.

These CAR ratios are based on net worth numbers which do not take into account the audited profits for the half year ended September 30, 2013.

Had the same been included, the total CAR and Tier-I CAR would have been 15.6% and 10.9% respectively.

NETWORK As of September30, 2013 : The Bank’s distribution network was at
3,251 branches and 11,177 ATMs in 2,022 cities / towns an increase of 631branches and 861 ATMs over 2,620 branches and 10,316 ATMs in 1,454cities / towns as of
September30, 2012.

ASSET QUALITY :-

Gross non-performing assets(NPAs)were at 1.09% of gross advances as on September 30, 2013,as against 1.04% as on June 30, 2013 and 0.91% as on September 30, 2012. Net non-performing assets were at 0.3% of net advances as on  September 30,2013.

Total restructured loans(including applications received and under process for restructuring) were at 0.2% of gross advances as of September30, 2013 as against
0.3% as of September30, 2012.


COMMENTS :-

HDFC BANK has again performed excellently. Net Revenues have increased by 18.1 % YoY. Net Interest Margin stays at 4.3 % (More or less the same as 4.4% in corresponding Qtr). Net Profit has grown by 27.1 %, slightly lesser growth than >30% growth in all preceding quarters mainly due to IT surcharge jump from 5% to 10%.

We need to remember that RBI had imposed a Liquidity squeeze during the quarter. This may have had some impact on every Bank. But, now that the squeeze has been relaxed , all banks can be expected to perform in Q3 and Q4  much better than Q2.


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