A recent press report said that HDFC Bank has recorded a profit of 31.5% which is mainly due to its strong business growth.
Reports said that in spite of the growth in the bank’s net interest income and fee income by 16.6 per cent and 15.6 per cent respectively, profit growth was supported by a fall in provisioning. The growth in profit was also aided by higher forex and derivative revenues and lower losses from the sale of investments. Profits were above Bloomberg consensus estimates leading to the stock gaining 3.2 per cent at close on Wednesday.
Reports added saying that the loan book of the bank has shown a healthy pace of growth. The loan book has currently grown by 7.4 per cent. The bank’s low-cost deposits had fallen from 51 per cent in March 2011 to 47.3 per cent in the three months ended September 2011.
The bank’s net interest margins (NIM) fell from 4.2 per cent to 4.1 per cent and the credit-deposit ratio also fell from 83 per cent to 81 per cent. Its loan portfolio includes home loans, personal loans, car loan, business loans etc.