1.
powered by bluebytes
Saturday , January 19, 2013
HDFC Bank net rises 30% on retail loans, other income
Publication: DNA , Journalist:Parnika Sokhi
Edition:Bangalore/Ahmedabad/Pune/Mumbai , Page No: 12, Location: Middle­Left , Size(sq.cms): 192
HDFC Bank net rises 30% on retail loans, other
income
Parnika Sokhi« MUMBAI
HDFC Bank, second­largest
private sector lender, has re­
ported a 30% year­on­year
growth in its third­quarter net
profit at Rs1,859 crore, mainly
driven by strong loan growth
and other income.
The net interest income
rose 22% and other income
grew 26% as compared to the
year ago period. Fees & com­
missions, main contributors
to other income, were up
24.3% in Q3.
The bank witnessed annual
credit growth of 24% in Q3, with the
retail segment growing 29% and
corporate segment growing 18%.
Paresh Sukthankar, execu­
tive director, HDFC Bank,
said, "Right now, growth in
retail loans has outpaced
corporate segment, but the
roles could reverse over the
next year or two if you have
strong buildu p i n c a p e x
demand."
HDFC Bank's deposits
grew at 22.2% over last year
and the current account
savings account (Casa) ratio
stood at 45.4% for Q3. The
bank's net interest margins
(NIMs) were stable at 4.1% at
the end of December 2012.
The gross non­performing
assets (NPAs) ratio was up at
1 % from 0.91 % last quarter and net
NPA ratio was stable at 0.2%.
Sukhtankar said 80% of the
incremental NPAs came from retail.
Within the retail segment,
most of the NPAs came from
the commercial vehicle and
construction equipment
loans.
"In both these products,
the asset that generates
income services the loan.
Therefore, these are cyclical
a n d i f t h e e c o n o m y i s
growing at 3%
slower than what it was,
naturally the ability to service
the loan gets impacted to
some extent," he said,
adding, higher fuel costs
could be a risk factor, going
ahead.
"Strong traction in fee­
based income growth is posi­
tive while some uptick in NPAs in
absolute terms can be viewed
negative. However, NPAs in
percentage terms remained within
the management guidance," said
Saday Sinha, banking analyst at Ko­
tak Securities.
The bank's provisioning
coverage ratio was at 80% as on
December­end, while restructured
assets stood at 0.3% of the gross
advances and capital adequacy
ratio was at 17%.