HDFC Bank reports 30.4% increase YOY in net profit

For the quarter ended June 30, 2006, the bank has earned total income of Rs 1855.1 crores as against Rs. 1157.7 crores in the corresponding quarter ended June 30, 2005. Net revenues (net interest income plus other income) were Rs. 1168.4 crores for the quarter ended June 30, 2006, an increase of 48.4% over Rs. 787.2 crores for the corresponding quarter of the previous year. Interest earned (net of loan origination costs) increased from Rs. 894.1 crores in the corresponding quarter ended June 30, 2005 to Rs. 1504.3 crores. Net interest income (interest earned less interest expended) for the quarter ended June 30, 2006 increased by 56.1% to Rs.817.6 crores, driven by average asset growth of 52.5 % and a stable net interest margin of just over 4.0%.

Other income (non-interest revenue) for the quarter ended June 30, 2006 was Rs 350.8 crores, consisting principally of fees & commissions of Rs.290.6 crores, foreign exchange & derivatives revenues of Rs.55.8 crores, and profit/(loss) on sale / revaluation of investments of Rs.(2.3) crores as against Rs.215.2 crores, Rs.23.8 crores and Rs.23.4 crores respectively, for the quarter ended June 30, 2005. Operating expenses for the quarter were Rs.552.7 crores against Rs.358.0 crores in the corresponding quarter of the previous year. Provisions and contingencies for the quarter were Rs.376.4 crores, primarily comprising general & specific loan loss provisions of Rs.185.4 crores and amortization of premia (for investments in the Held to Maturity category) of Rs.59.9. crores. After providing Rs.l 12.5 crores for taxation, the Bank earned a Net Profit of Rs.239.3 crores, a 30.4% increase over the quarter ended June 30, 2005.

Source : Equity Bulls

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