HDFC Bank net revenues rise by 22.2% to Rs 9,232.7 crore

The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarter ended September 30, 2015 and the audited results for the half- year ended September 30, 2015, at their meeting held in Mumbai on Wednesday, October 21, 2015.

Profit & Loss Account: Quarter ended September 30, 2015

The Bank’s total income for the quarter ended September 30, 2015 was Rs 17,324.3 crore up from Rs 13,894.7 crore for the quarter ended September 30, 2014. Net revenues (net interest income plus other income) increased by 22.2 per cent to Rs 9,232.7 crore for the quarter as against Rs 7,558.1 crore for the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended September 30, 2015 grew by 21.2 per cent to Rs 6,680.9 crore, from Rs 5,511.0 crore for the quarter ended September 30, 2014 driven by average assets growth of 29.0 per cent and a net interest margin for the quarter of 4.2 per cent.

Other income (non-interest revenue) at Rs 2,551.8 crore was 27.6 per cent of the net revenues for the quarter ended September 30, 2015 and grew by 24.7 per cent over Rs 2,047.1 crore in the corresponding quarter ended September 30, 2014. The four components of other income for the quarter ended September 30, 2015 were fees and commissions of Rs 1,868.9 crore (Rs 1,536.5 crore in the corresponding quarter of the previous year), foreign exchange and derivatives revenue of Rs 319.6 crore (Rs 221.7 crore for the corresponding quarter of the previous year), gain on revaluation / sale of investments of Rs 162.4 crore (Rs 95.1 crore in the corresponding quarter of the previous year) and miscellaneous income including recoveries of Rs 200.9 crore (Rs 193.8 crore for the corresponding quarter of the previous year).

Operating expenses for the quarter ended September 30, 2015 were Rs 4,189.8 crore, an increase of 19.8 per cent over Rs 3,497.9 crore during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 45.4 per cent as against 46.3 per cent for the corresponding quarter ended September 30, 2014.

Provisions and contingencies for the quarter ended September 30, 2015 were Rs 681.3 crore (consisting of specific loan loss provisions Rs 484.4 crore, general provisions Rs 133.1 crore, floating provisions Rs 50.0 crore and other provisions Rs 13.8 crore) as against Rs 455.9 crore (consisting of specific loan loss provisions net of utilization of floating provisions Rs 384.4 crore, general provisions Rs 51.9 crore and other provisions Rs 19.6 crore) for the corresponding quarter ended September 30, 2014. After providing Rs 1,492.2 crore for taxation, the Bank earned a net profit of Rs 2,869.5 crore, an increase of 20.5 per cent over the quarter ended September 30, 2014.

Balance Sheet: As of September 30, 2015

Total deposits as of September 30, 2015 were Rs 506,909 crore, an increase of 29.7 per cent over September 30, 2014. CASA deposits saw healthy growth with current account deposits growing by 20.8 per cent over the previous year to reach Rs 69,811 crore and savings account deposits growing by 18.7 per cent over the previous year to reach Rs 131,522 crore. Time deposits were at Rs 305,575 crore, an increase of 37.6 per cent over the previous year resulting in CASA proportion of 40 per cent as on September 30, 2015.

Advances as of September 30, 2015 were Rs 418,541 crore, an increase of 27.9 per cent over September 30, 2014. This loan growth was contributed by both segments of the Bank’s loan portfolio, with domestic retail loans and wholesale loans as per the Bank’s internal business classification growing by 29.3 per cent and 23.4 per cent respectively (as per regulatory [Basel 2] segment classification growing by 29.3 per cent and 25.1 per cent respectively). The domestic loan mix as per Basel 2 classification between retail:wholesale was 52:48 and advances in overseas branches as of September 30, 2015 were at 7.5 per cent of the total advances.

Half Year ended September 30, 2015

For the half year ended September 30, 2015, the Bank earned a total income of Rs 33,827.3 crore as against Rs 26,965.4 crore in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the six months ended September 30, 2015 were Rs 18,083.3 crore, as against Rs 14,580.3 crore for the six months ended September 30, 2014, an increase of 24.0 per cent. Net profit for the half year ended September 30, 2015 was Rs 5,565.2 crore, up by 20.6 per cent over the corresponding half year ended September 30, 2014.

Capital Adequacy

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines, was at 15.5 per cent as at September 30, 2015 (15.7 per cent as at September 30, 2014) as against a regulatory requirement of 9 per cent. Tier-I CAR was at 12.8 per cent as on September 30, 2015 compared to 11.8 per cent as at September 30, 2014.

Network

As of September 30, 2015, the Bank’s distribution network was at 4,227 branches and 11,686 ATMs across 2,501 cities / towns. 55 per cent of branches are now in the semi-urban and rural areas. Number of employees increased from 75,339 as of September 30, 2014 to 83,416 as of September 30, 2015.

Asset Quality

Gross non-performing assets (NPAs) were at 0.9 per cent of gross advances as on September 30, 2015, as against 1.0 per cent as on September 30, 2014. Net non-performing assets were at 0.2 per cent of net advances as on September 30, 2015. Total restructured loans were at 0.1 per cent of gross advances as of September 30, 2015 as against 0.1 per cent as of September 30, 2014.

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