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Journalism of Courage
Strong corporate and retail loan demand in a fast-growing economy helped HDFC Bank,India8217;s No. 2 private sector lender,to post a 34 percent rise in quarterly profit,meeting street estimates.
The bank,also listed in New York,said that gross advances grew by 40 percent in the April-June quarter from a year ago to 1.5 trillion rupees 31 billion.
HDFC Bank and its bigger rivals State Bank of India and ICICI Bank are seeing a pick-up in demand for loans on the back of improving business and consumer confidence in an economy forecast to grow about 8.5 percent in 2010/11.
Analysts said banks8217; loan growth in April-June,the fiscal first quarter,was helped by mobile carriers8217; scramble to secure funds to pay for 3G spectrum after winning an auction for high-speed radiowaves.
The government has raised 14.3 billion from the auction,nearly double the target.
The central bank sees non-food credit growth of banks at 20 percent in 2010/11,still a far cry from growth rates of above 30 percent in the pre-crisis period.
ICICI Bank,India8217;s second-largest lender,expects its loans to expand by a fifth in the fiscal year ending March,its chief executive said on Monday,as corporate and retail borrowing rise in a growing economy.
HDFC Bank said its April-June net profit rose to 8.12 billion rupees from 6.06 billion rupees a year ago. A poll of brokerages had projected the quarterly net profit at 8.15 billion rupees.
Shares in HDFC Bank,which the market values at 20 billion,ended 0.6 percent higher at 2,050.35 rupees in the main Mumbai market that ended down 0.2 percent. 1=47.1 rupees
HDFC Bank margins will remain in a range
HDFC Bank8217;s margins will remain in a range,and credit growth will be more than the sector8217;s 20 percent growth,Paresh Sukthankar,executive director at the Indian lender,told said on Monday.
