HDFC Bank Q1 net up 31% to Rs 1,417.4 crore, stocks up

HDFC Bank Friday reported 30.6 percent growth in net profit to Rs 1,417.4 crore for the first quarter ended June, 2012.

Last Updated: Jul 13, 2012, 22:03 PM IST

Mumbai: Country's second largest private sector lender HDFC Bank on Friday posted a 30.6 percent rise in standalone bottomline for the June quarter at Rs 1,417 crore driven by a robust growth in non-interest income.

The bank reported 36.6 growth in non-interest income which rose to Rs 1,529 crore and a 22.3 percent rise in the core interest income component to Rs 3,484 crore.

The total income of the bank rose to Rs 9,536.9 crore in the April-June quarter, from Rs 7,098 crore a year ago -- an increase of 34.3 percent.

The stock market cheered the results and the scrip gained 1.21 percent to Rs 586.85 on the BSE.

HDFC Bank's margins stood flat at 4 percent on a sequential basis.

The bank's Managing director and Chief Executive Aditya Puri said the company's margins will continue to remain in the 3.9 to 4.2 percent range going forward.

The bank posted a credit growth of 9 percent over the March quarter and 21.5 percent year-on-year with corporate loans outgrowing retail advances.

On a sequential basis, loans to the corporate segment grew 15 percent against loans to retail segment rising by a mere 4.4 percent, prompting the bank to say it is studying reasons for this poor show.

Credit growth is a factor of economic growth and the bank will outgrow the overall credit growth by 2-3 percent during the fiscal, Puri told reporters.

HDFC Bank's operating expenses over the past year rose to Rs 2,432 crore, pushing up its cost-to-income ratio to 49.2 percent against 48.3 percent a year ago.

The percentage of the low-cost current and savings account (Casa) deposits stood at 46 percent for the bank duing the quarter.

The banks' provisioning rose to Rs 487.3 crore compared to Rs 443.7 crore in the year ago period, but net non-performing asset ratio stood unchanged at 0.2 percent.

The bank will is not consider any acquisition at present and will be requiring some capital if it has to move in line with the RBI formula of implementing the Basel-III norms, Puri said.

Its total capital adequacy stood at 15.5 percent as on June 30, with the core tier-I occupying 10.9 percent.