Thursday, Nov 27, 2014

HDFC Bank Q4 profit jumps 23 pct to Rs 2,326.52 crore

Net interest income, the difference between interest earned and paid out, rose 15.3 percent to 49.53 billion rupees. Reuters Net interest income, the difference between interest earned and paid out, rose 15.3 percent to 49.53 billion rupees. Reuters
Reuters | New Delhi | Posted: April 22, 2014 4:28 pm | Updated: April 22, 2014 8:49 pm

HDFC Bank Ltd today posted a 23.1 per cent increase in net profit to Rs 2,326.52 crore in the January-March quarter of 2013-14.

The country’s second-largest private lender had a profit of Rs 1,889.84 crore in the corresponding quarter last year. Total income rose 14.9 per cent to Rs 12,790 crore from Rs 11,127.5 crore a year earlier.

Net interest income (interest earned less interest expended) for the quarter grew 15.3 per cent to Rs 4,952.6 crore, driven by average asset growth of 20.3 per cent, the bank said in a statement.

The board recommended a dividend of Rs 6.85 per equity share of Rs 2 for the year ended March 31 as against Rs 5.5 per share for the previous year.

For the financial year 2013-14, HDFC Bank posted a net profit of Rs 8,478.4 crore, an increase of 26 per cent from Rs 6,726.28 crore in the previous year.

The bank’s income was Rs 49,055.18 crore in FY14 compared with Rs 41,917.49 crore in the previous financial year. Consolidated net profit of the bank increased 27.3 percent to Rs 8,743.5 crore for the year ended March 31.

The net interest margin in FY14 was 4.4 per cent as against 4.5 per cent for the year ended March 31, 2013.

HIGHLIGHTS

* Net profit at 23.27 bln rupees vs 23.91 bln rupees estimate

* Net interest income rise 15 pct

* Banks profitability seen under pressure due to weaker economy

HDFC Bank Q4 posts 23 pct net profit growth, slowest in a decade

(Reuters) HDFC Bank Ltd, India’s third-biggest lender by assets, said its quarterly net profit rose 23 percent, the slowest growth in a more than a decade and slightly lower than estimates, as a weaker economy put the brakes on lending.

The Mumbai-based bank said net profit rose to 23.27 billion rupees ($384.79 million) for the fiscal fourth quarter ending March from 18.9 billion rupees in the same year-ago period. Analysts had on average forecast a net profit of 23.91 billion rupees, according to Thomson Reuters data.

India’s economic growth has almost halved to below 5 percent in the past two years on weak investments and consumer demand, the worst slowdown for the south Asian nation since the 1980s.

This has led to a decline in credit and a rise in bad debts, factors which analysts expect will weigh on the profitability of the banking sector this fiscal year.

HDFC, which has outperformed rivals with consistently high profit growth of about 30 percent and stable asset quality, has seen profit growth weaken in the past three quarters as loans and fee incomes grew at a slower pace.

Net interest income, the difference between interest earned and paid out, rose 15.3 percent to 49.53 billion rupees in the three months to March, the bank said on Tuesday.

Asset continued…

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