Healthy loan growth and core net interest margins helped HDFC Bank achieve decent results for the last quarter of the 2013 fiscal
HDFC Bank reported total income of Rs11,127.5 crore for the quarter ended 31 March 2013, which was 21.1% higher than the Rs9,189.9 crore recorded in the corresponding period last year, while net interest income grew 20.65% to Rs4295.3 crore. The bank earned 30.1% higher net profit, at Rs1889.9 crore for the March 2013 quarter. The higher income was driven by loan growth of 22.7% and a core net interest margin of 4.5% (which is higher than the 4.4% recorded for the same period last year).
According to Moneylife database, the bank’s revenue grew below its three-quarter year-on-year (y-o-y) average of 24%, while its operating profit grew only 17% which is also below its three-quarter y-o-y average of 23%. Upon further examination, its revenue growth percentage has been declining albeit steadily, but it is still at healthy levels. Its valuation stood with market capitalisation quoting at 12.93 times operating profit while return on networth stood at a decent 22%.
Reflecting the stable asset quality provisions and contingencies were Rs300.5 crore for the quarter ended 31 March 2013 when compared to the Rs411.6 crore for the same period last year. The bank’s total capital adequacy ratio improved only slightly as it stood at 16.8% for the March 2013 quarter when compared to 16.5% last year.
The bank made slight progress in recovering bad assets as its gross non performing assets stood at 0.97% of gross advances as on 31 March 2013 when compared to 1.02% on 31 March 2012. However, net non performing assets remained the same, at 0.2% of net advances.
As of 31 March 2013, the bank added 518 branches during the 2013 fiscal, and has a distribution network of 3062 branches, 10,743 ATMs in 1,845 cities and towns, which is higher, when compared to 2,544 branches, 8,913 ATMs in 1,399 cities last year.
The board of directors recommended a dividend of Rs5.5 per equity share of Rs2 for the year ended 31 March 2013.
For other company results, please check this link: http://moneylife.in/investing/stocks
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
