HDFC Bank lifts profit as deposits grow faster than lending
HDFC Bank increased September-quarter standalone profit by 4.7 per cent to 195.1 billion rupees. Deposits grew faster than loans, while bad-loan ratios improved. Lower securities trading gains accompanied stronger interest income. The Indian bank also expanded its branch network even as its workforce shrank compared with a year earlier.
Economics & Markets··Evening
Profit rises despite lower trading gains
HDFC Bank, the Indian lender, earned standalone net profit of 195.1 billion rupees in the quarter ending September 30, an annual increase of 4.7 per cent. Its board approved the accounts in Mumbai on October 17. The figures cover the bank’s own operations, with consolidated earnings reported separately.[1], [2]
Securities trading contributed 7.8 billion rupees, down from 23.9 billion rupees a year earlier. The bank put profit growth excluding those gains at approximately 12.6 per cent. Profit before tax was 259.1 billion rupees. The accounts, prepared under Indian accounting standards, underwent a limited review by the bank’s statutory auditors.[1]
Deposits outpace loan growth
Deposits at the end of the period reached 33,274 billion rupees, up 18.8 per cent over the year. Gross advances increased 16.3 per cent to 32,195 billion rupees. Retail lending grew 11.7 per cent, while loans to small and mid-market enterprises rose 23.5 per cent. The deposit and lending totals describe balances at the reporting date.[1]
Net interest income increased from 315.5 billion rupees to 346.2 billion rupees, a rise of 9.7 per cent. Net revenue reached 484.5 billion rupees against 459 billion rupees previously. Fees and commissions supplied 96.9 billion rupees. Operating expenses rose from 179.8 billion rupees to 189.7 billion rupees, with the cost-to-income ratio at 39.1 per cent.[1]
More branches and fewer employees
The network grew to 9,706 branches from 9,545, with half in rural and semi-urban areas. Employees fell to 210,109 from 220,339, and cash machines to 20,881 from 21,417. Gross bad loans accounted for 1.11 per cent of advances, compared with 1.24 per cent previously; the net ratio was 0.37 per cent. Capital adequacy stood at 18.9 per cent against an 11.9 per cent requirement. Consolidated profit was 207 billion rupees for the quarter and 399.4 billion rupees for the half year.[1]
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