HDFC Bank delivers yet another steady quarter

Rex Mathew
18 October 2006

For the quarter ended 30 September 2006, net profits of HDFC Bank has increased by 31.71 per cent to Rs262.94 crore, or Rs8.3 per share, from Rs199.64 crore, or Rs6 per share, for the previous year quarter.

Gross income increased by a substantial 58.48 per cent to Rs2,033.37 crore from Rs1,283.05 crore for the same quarter of previous year. Gross interest income went up by 59.9 per cent to Rs1,635.66 crore for the quarter from Rs1,022.9 crore a year ago.

Interest expended jumped 92.34 per cent to Rs790.06 crore from Rs410.77 crore. Net interest income (total interest earned less total interest expended) increased by a lower 38.14 per cent to Rs845.6 crore from Rs612.13 crore, as a result of the rising cost of funds for the bank.

Fee-based income and other income went up by 52.88 per cent to Rs397.71 crore from Rs260.15 crore for the previous year quarter. Of this, fee & commissions contributed Rs314.1 crore, Rs58.2 crore came from foreign exchange and derivatives while the remaining Rs20.6 crore was profits from sale of investments.

Operating profits went up by 41.12 per cent to Rs664.18 crore from Rs470.64 crore a year ago. Staff costs were higher by 57.46 per cent at Rs181.33 crore while other operating expenses went up by 38.86 per cent to Rs397.8 crore.

Provisions for NPA''s and contingencies saw a sharp rise of 69.26 per cent to Rs305.71 crore from Rs180.62 crore for the previous year quarter. Of this, provisions for standard and non-performing assets were Rs220.7 crore while Rs57.6 crore was provided for securities in the held-to-maturity category. Tax provisions went up by 5.7 per cent to Rs95.53 crore.