HDFC Bank net profit soars by 46 pc

MUMBAI, APR 14: The board of directors of HDFC Bank Ltd today recommended a dividend of Rs 1.60 (16 per cent) per equity share on the back...

MUMBAI, APR 14: The board of directors of HDFC Bank Ltd today recommended a dividend of Rs 1.60 (16 per cent) per equity share on the back of a robust 46 per cent growth in net profit at Rs 120 crore and an 81 per cent jump in total income at Rs 805.2 crore for the year ended March 31, 2000 over the same period previous year.

The bank said it would be picking up a 29.5 per cent stake in the yet to be floated broking company HDFC Securities Private Limited, which would focus on providing E-broking and related services mainly to retail customers.

HDFC Bank, which declared a 13 per cent dividend last year, said shareholders of the erstwhile Times Bank Ltd would be entitled to receive dividend on pro-rata basis with effect from February 26, 2000 pursuant to the scheme of amalgamation.

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HDFC Bank’s promoters and strategic investors who had been allotted 1,98,00,000 equity shares of Rs 10 each at an issue price of Rs 94 per share on March 29, 2000 would also be paid dividend on pro-rata basis. Post amalgamation and preference issue, its share capital has increased by a total of Rs 43.28 crore to Rs 243.28 crore.

With the amalgamation of Times Bank with it the profit and loss account figures reflect the standalone HDFC Bank’s revenues and expenses till February 25, 2000 and those of the merged HDFC Bank from February 26, 2000 till March 31, 2000. Total deposits of the bank during the year shot up by 189 per cent to Rs 8428 crore, while savings accounts deposits grew by a whopping 224 per cent to Rs 1125 crore, according to the annual audited financial results released here.

Total advances vaulted by 140 per cent to Rs 3362 crore and investment in corporate debt increased by 90 per cent to Rs 1080 crore over the corresponding period last year, it said, adding, as a result customer assets grew by 125 per cent to Rs 4442 crore.

Net non-performing assets (NPAs net of specific loan loss provisions) as on March 31, 2000 were 0.77 pc of customer assets (1.08 pc on March 31, 1999) and capital adequacy ratio stood at a healthy 12.1 per cent as on March 31, 2000 as against the regulatory minimum of nine per cent.

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“Balance sheet parameters have grown significantly during the year, partly due to the merger and partly reflecting the robust growth in business volumes and a more favourable macro economic environment,” HDFC Bank MD Aditya Puri said.

He pointed out that total number of retail accounts rose from 345,000 in March 31, 1999 to 825,000 as on March 31, 2000 and branch network currently stands at 111 branches (57 in March 1999). The bank has achieved an exponential growth of 500 per cent in its custodial and depository participant (DP) services with the total number of investor demat accounts going up from 50,000 in March 1999 to over 300,000 in March 2000.