Date:18/10/2006 URL: http://www.thehindubusinessline.com/2006/10/18/stories/2006101802180600.htm

HDFC Bank net rises 31 pc in Q2

Our Bureau

Strong growth in retail, corporate loans

Mumbai , Oct. 17

Net profit of HDFC Bank rose 31.7 per cent to Rs 262.94 crore for the second-quarter ended September 30 against Rs 199.64 crore for the same period last year. The bank saw strong growth in retail and corporate loans, though the retail loan book grew slightly faster, said Mr Paresh Sukthankar, Head - Credit and Market Risk.

The bank maintained its net interest margin at 4 per cent, which is perhaps one of the highest in the industry, he added.

"Interest earned and spent went up on higher interest rates. But the overall growth in assets helped growth," Mr Sukthankar added.

Income from fees and commissions grew to Rs 314.1 crore (Rs 217.8 crore); revenues from forex and derivatives were Rs 58.2 crore (Rs 28.4 crore) and profit on sale or revaluation of investments was Rs 20.6 crore (Rs 11.9 crore).

The profit on investments rose on write backs on bonds which were marked-to-market, as yields on bonds came down on in the June-September period, he said.

Deposit growth was marginally higher at 39.6 per cent as against a rise in advances of 34.2 per cent. Share of low cost deposits (current and savings accounts) stood at 52 per cent of the total deposit base.

Of the total advances, retail loans formed 56 per cent and wholesale (corporate) loans 44 per cent.

For the half-year ended September 30, 2006, the bank had a net profit of Rs 502.24 crore, (Rs 383.17 crore), up by 31.1 per cent.

The bank raised about Rs 700 crore of upper and lower Tier II and hybrid Tier I capital in the first quarter.

"We are growing fast and to support this growth we could raise more capital," Mr Sukthankar said.

Shares of HDFC Bank closed at Rs 1,009.1 on the BSE, down 3.58 per cent from the previous close of Rs 1,046.55.