Financial Daily from THE HINDU group of publications
Thursday, May 27, 2004
Financial Daily from THE HINDU group of publications Thursday, May 27, 2004 |
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Money & Banking
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Private Banks HDFC Bank relies less on treasury income Our Bureau
Mumbai , May 26 HDFC Bank has in an attempt to insulate itself from interest rate fluctuations consciously reduced its dependence on treasury income. Treasury income (i.e., profit on sale of investments which is subject to interest rate fluctuations) constitutes a mere two per cent of the net revenues of the bank for FY04, said Mr Jagdish Capoor, Chairman, HDFC Bank, at the bank's annual general meeting held here today. In FY03, the dependence on treasury income was higher at about 10 per cent. This has been brought down intentionally so that we are not affected by interest rate fluctuations, explained Mr Paresh Sukthankar, Head (Credit & Market Risk), HDFC Bank, at the sidelines of the shareholders meeting. Revenue growth of the bank was driven principally by a 63 per cent increase in net interest income as a result of a 37 per cent increase in the average balance sheet size and an improvement in net interest margin from 3.2 per cent to 3.8 per cent. The bank has projected a 25-35 per cent growth in business volumes for FY05. For FY04, the bank had given projection of 25-30 per cent increase in net profit, which it surpassed with a jump of 31.5 per cent in net profit to Rs 509.5 crore for the year-ended FY04. The bank also plans to increase its branch network.
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