The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) accounts for the quarter and nine months ended December 31, 2011 at its meeting held in Mumbai on Thursday, January 19, 2012. The accounts have been subject to a “Limited Review” by the Statutory Auditors of the Bank.
Profit & Loss Account: Quarter ended December 31, 2011
For the quarter ended December 31, 2011, the Bank’s total income was `8,622.6 crores, an increase of 35.6% over `6,357.8 crores, for the quarter ended December 31, 2010. Net revenues (net interest income plus other income) were `4,536.0 crores for the quarter ended December 31, 2011, as against `3,904.5 crores for the corresponding quarter of the previous year. Interest earned (net of loan origination costs and amortization of premia on investments held in the Held to Maturity (HTM) category) increased by 37.7% from `5,230.0 crores in the quarter ended December 31, 2010 to `7,202.6 crores in the quarter ended December 31, 2011. Net interest income (interest earned less interest expended) for the quarter ended December 31, 2011 grew by 12.2% to `3,116.0 crores, driven by asset growth and a net interest margin (NIM) of 4.1% which remained stable on a sequential basis.
Other income (non-interest revenue) for the quarter ended December 31, 2011 increased by 25.9% to `1,420.0 crores, primarily contributed by fees and commissions of `1,127.6 crores, up 19.6% over `942.8 crores during the quarter ended December 31, 2010. The other two components of other income were foreign exchange & derivative revenues of `365.6 crores (`216.8 crores for the corresponding quarter ended December 31, 2010) and loss on revaluation / sale of investments of `81.8 crores (loss of `30.7 crores for the corresponding quarter of the previous year).
With the ongoing expansion in the bank’s business and extension of the branch distribution network to 341 new cities, operating expenses, for the quarter ended December 31, 2011 were up 17.8% to `2,158.0 crores. The core cost to income ratio was therefore at 46.7% as against 46.5% for the quarter ended December 31, 2010. With stable asset quality, provision and contingences for the quarter ended December 31, 2011 were `329.2 crores (against `465.9 crores for the corresponding quarter ended December 31, 2010), comprising primarily of loan loss provision of `289.3 crores (against `292.9 crores for the corresponding quarter ended December 31, 2010). After providing `619.1 crores for taxes, the Bank earned a Net Profit of `1,429.7 crores, an increase of 31.4% over the corresponding quarter ended December 31, 2010.
Balance Sheet: As of December 31, 2011
The Bank’s total balance sheet size increased to `335,487 crores as of December 31, 2011. Total deposits were `232,508 crores, up by 21.0% over December 31, 2010, primarily driven by a 15.2% growth in savings deposits to `70,330 crores. Core CASA deposit adjusted for one-off current account balance of approx `4000 crores was at 47.7% of total deposit as at December 31, 2011. Gross advances grew by 21.9% over December 31, 2010 to `195,788 crores, with the retail loans accounting for 51.3% of total loans.
Nine Months ended December 31, 2011
For the nine months ended December 31, 2011, the Bank earned total income of `23,650.0 crores as against `17,539.1 crores in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the nine months ended December 31, 2011 increased by `1,877.1 crores to `12,660.2 crores. Net Profit for the nine months ended December 31, 2011 was `3,714.0 crores, up by 32.1% over the corresponding nine months ended December 31, 2010.
The Bank’s total Capital Adequacy Ratio (CAR) as at December 31, 2011 (computed as per Basel 2 guidelines) remained strong at 16.3%, against the regulatory minimum of 9%. Tier-I CAR was 11.2% as of December 31, 2011.
As of December 31, 2011, the Bank’s distribution network was 2,201 branches and 7,110 ATMs in 1,174 cities as against 1,780 branches and 5,121 ATMs in 833 cities as of December 31, 2010.
Portfolio quality as of December 31, 2011 remained healthy with gross non-performing assets (NPAs) at 1.0% of gross advances and net non-performing assets at 0.2% of net advances (as against 1.1% gross NPA and 0.2% net NPA ratios as of December 31, 2010). The Bank’s provisioning policies for specific loan loss provisions remained higher than regulatory requirements. The NPA provision coverage ratio (excluding write-offs, technical or otherwise) was at 80.3% as of December 31, 2011. Total restructured assets were 0.4% of the bank’s gross advances as of December 31, 2011. Of these, restructured advances categorized as standard assets were 0.1% of the Bank’s gross advances.
Note:`= Indian Rupees1 crore = 10 millionAll figures and ratios are in accordance with Indian GAAP.
Certain statements are included in this release which contain words or phrases such as “will,” “aim,” “will likely result,” “believe,” “expect,” “will continue,” “anticipate,” “estimate,” “intend,” “plan,” “contemplate,” “seek to,” “future,” “objective,” “goal,” “project,” “should,” “will pursue” and similar expressions or variations of these expressions that are “forward-looking statements.” Actual results may differ materially from those suggested by the forward-looking statements due to certain risks or uncertainties associated with our expectations with respect to, but not limited to, our ability to implement our strategy successfully, the market acceptance of and demand for various banking services, future levels of our nonperforming loans, our growth and expansion, the adequacy of our allowance for credit and investment losses, technological changes, volatility in investment income, our ability to market new products, cash flow projections, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to pay dividends, the impact of changes in banking regulation and other regulatory changes in India and other jurisdictions on us, our ability to roll over our short-term funding sources and our exposure to market and operational risks. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what may actually occur in the future. As a result, actual future gains, losses or impact on net income could materially differ from those that have been estimated. In addition, other factors that could cause actual results to differ materially from those estimated by the forward-looking statements contained in this document include, but are not limited to: general economic and political conditions, instability or uncertainty in India and the other countries which have an impact on our business activities or investments, caused by any factor including terrorists attacks in India or elsewhere, anti-terrorist or other attacks by any country, military armament or social unrest in any part of India; the monetary and interest rate policies of the government of India; natural calamities, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices; the performance of the financial markets in India and globally; changes in Indian and foreign laws and regulations, including tax, accounting and banking regulations; changes in competition and the pricing environment in India; and regional or general changes in asset valuations.