Date:22/10/2004 URL: http://www.thehindubusinessline.com/2004/10/22/stories/2004102202950100.htm

Back HDFC Bank Q2 net up 30 pc — Board approves $300-m ADS plan

Our Bureau

Mumbai , Oct. 21

HDFC Bank Ltd proposes to raise up to $300 million through an offering of American depository shares (ADS). The board of directors of the bank, which met on Thursday, approved the proposal.

Post ADS, the bank's foreign shareholding may not exceed 47-48 per cent depending on the price of the shares and number of shares issued.

The bank has reported a 30 per cent jump in net profit to Rs 152.30 crore for the quarter ended September 30, 2004 against Rs 117.14 crore in the corresponding period in the previous year.

Total income of the bank grew by 18.7 per cent to Rs 867.40 crore (Rs 730.90 crore).

Net interest income, which rose by 33 per cent to Rs 425.60 crore (Rs 342.20 crore) was cited as the primary driver of growth in profits by Mr Paresh Sukthankar, Head, Credit and Market Risk, HDFC Bank.

Stable net interest margin at around 3.8 per cent and healthy growth in retail loans have been major contributors to the bank's revenues, he added.

Retail loans had a year-on-year growth of 68.7 per cent to Rs 9,196 crore, which form 42.8 per cent of gross advances in the quarter.

Mr Sukthankar pointed out strong growth in commissions as another key growth driver of the bank. Fees and commission of the bank grew 71 per cent to Rs 133.90 crore (Rs 78.30 crore).

Net revenues of the bank, comprising net interest income and other income, went up by 28 per cent for the period to Rs 548.30 crore (Rs 428.50 crore).

However, the bank has reported a loss on sale or revaluation of investments aggregating to Rs 25.9 crore over a loss of Rs 18.8 crore in the corresponding previous quarter. The bank has Rs 3,000 crore securities to HTM category.

Gross non-performing assets (NPAs) of the bank for the quarter were at 1.5 per cent (1.9 per cent). Net NPAs of the bank have remained unchanged at 0.2 per cent for the period.

Net profit of the bank for the half-year ended September 30 soared 30.2 per cent to Rs 292.30 crore over Rs 224.42 crore in the previous six months. For the half year, the bank earned a total income of Rs 1,678 crore (Rs 1,440 crore).