The Hindu Business Line : HDFC Bank's Q4 net up 30.5%

Mumbai April 24 HDFC Bank said its fourth quarter net profit rose 30.5 per cent, riding an increase in net interest income from asset growth, and a higher fee income.

Net profit for the quarter amounted to Rs 343.6 crore, up from Rs 263.2 crore a year ago.

Total income rose 41.7 per cent, to Rs 2,384 crore (Rs 1,683 crore). Interest earned (net of loan origination costs), at Rs 1,989.8 crore, rose 44.3 per cent.

Net interest income rose 51.2 per cent, to Rs 1,117.7 crore, driven by average asset growth of 27 per cent and an increase in core net interest margin to 4.5 per cent from just over 4 per cent a year ago.

Higher lending rates

"The increase in net interest margin during the quarter was due to higher transactional floats, an increase in lending rates and a tactical move to temporarily reduce bulk fixed deposits in the quarter due to the then prevailing high interest rates," said the statement.

For the year ended March 31, 2007, HDFC Bank reported a net profit of Rs 1,141.5 crore, 31.1 per cent up from the previous fiscal (Rs 870.8 crore). Total income amounted to Rs 8,405 crore (Rs 5,599 crore).

At the end of the financial year, total deposits were at Rs 68,298 crore (Rs 55,797 crore). Gross advances during the fiscal grew 29.6 per cent, to Rs 49,780 crore, retail advances growing 33.4 per cent and wholesale 24.9 per cent.

Other figures

Total customer assets (including securitisation investments) amounted to Rs 53,715 crore as of March 31, 2007. The bank's total Capital Adequacy Ratio (CAR) stood at 13.1 per cent.

During FY 07, the Bank raised Rs 410 crore of subordinated debt qualifying as Lower Tier II capital, Rs 1,085 crore of Upper Tier II capital (including $100 million in foreign currency) and Rs 200 crore of perpetual debt qualifying as Hybrid Tier I capital.

Gross NPAs were at 1.2 per cent and net NPAs at 0.4 per cent.

The Board of the company recommended a dividend of 70 per cent for the year. The company's scrip gained 2.65 per cent on BSE, closing at 1013.6 on Tuesday.

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