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HDFC Board of Directors approve results for the current quarter and half year

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Srinagar, Oct 20, CNS: The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarter and half year ended September 30, 2018, at their meeting held in Mumbai on Saturday. The accounts have been subjected to an audit by the statutory auditors of the Bank.

FINANCIAL RESULTS:

Profit & Loss Account: Quarter ended September 30, 2018

The Bank’s total income for the quarter ended September 30, 2018 at ` 28,215.2 crore grew by 21.2% from ` 23,276.2 crore for the quarter ended September 30, 2017. Net revenues (net interest income plus other income) increased by 18.1% to ` 15,779.0 crore for the quarter ended September 30, 2018 from ` 13,358.0 crore in the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended September 30, 2018 grew by 20.6% to ` 11,763.4 crore, from ` 9,752.1 crore for the quarter ended September 30, 2017, driven by average asset growth of 22.9% and a net interest margin for the quarter of 4.3%.

Other income (non-interest revenue) for the quarter ended September 30, 2018 was ` 4,015.6 crore. Fees and commission income at ` 3,295.6 crore for the quarter ended September 30, 2018 constituted 82.1% of other income and grew by 26.1% over ` 2,614.0 crore in the corresponding quarter ended September 30, 2017. The other three components of other income for the quarter ended September 30, 2018 were foreign exchange & derivatives revenue of ` 419.8 crore (` 384.0 crore for the corresponding quarter of the previous year), loss on revaluation / sale of investments of ` 32.8 crore (gain of ` 355.9 crore for the corresponding quarter of the previous year) and miscellaneous income, including recoveries, of ` 333.0 crore (` 252.0 crore for the corresponding quarter of the previous year).

Operating expenses for the quarter ended September 30, 2018 were ` 6,299.1 crore, an increase of 13.7% over ` 5,540.1 crore during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 39.9% as against 41.5% for the corresponding quarter ended September 30, 2017.

Provisions and contingencies for the quarter ended September 30, 2018 were ` 1,820.0 crore (consisting of specific loan loss provisions ` 1,572.5 crore and general provisions and other provisions ` 247.5 crore) as against ` 1,476.2 crore (consisting of specific loan loss provisions ` 1,078.8 crore and general and other provisions ` 397.4 crore) for the quarter ended September 30, 2017.

Profit before tax (PBT) for the quarter ended September 30, 2018 was up 20.8% to ` 7,660.0 crore.

After providing ` 2,654.3 crore for taxation, the Bank earned a net profit of ` 5,005.7 crore, an increase of 20.6% over the quarter ended September 30, 2017.

Balance Sheet: As of September 30, 2018

Total balance sheet size as of September 30, 2018 was ` 11,69,898 crore as against `9,33,637 crore as of September 30, 2017.

Total deposits as of September 30, 2018 were ` 8,33,364 crore, an increase of 20.9% over September 30, 2017. CASA deposits grew at 18.3% with savings account deposits growing by 18.7% over the previous year to reach ` 2,34,568 crore and current account deposits growing by 17.7% over the previous year to reach ` 1,15,131 crore. Time deposits were at ` 4,83,665 crore, an increase of 22.8% over the previous year, resulting in CASA deposits comprising 42.0% of total deposits as of September 30, 2018. The focus on deposits has helped in maintenance of a healthy liquidity coverage ratio at 118%, much above the regulatory requirement.

Total advances as of September 30, 2018 were ` 7,50,838 crore. Domestic advances grew by 24.2% over September 30, 2017. As per regulatory [Basel 2] segment classification, domestic retail loans grew by 23.8% and domestic wholesale loans grew by 24.7% (as per internal business classification, the growth was 23.3% and 26.2% respectively). The domestic loan mix as per Basel 2 classification between retail:wholesale was 55:45. Overseas advances constituted 3% of total advances.

Half Year ended September 30, 2018

For the half year ended September 30, 2018, the Bank earned a total income of ` 54,582.2 crore as against ` 45,461.6 crore in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the six months ended September 30, 2018 were ` 30,410.6 crore, as against ` 26,245.4 crore for the six months ended September 30, 2017. Net profit for the half year ended September 30, 2018 was ` 9,607.2 crore, up by 19.4% over the corresponding half year ended September 30, 2017.

Capital Adequacy:

The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 17.1% as on September 30, 2018 (15.1% as on September 30, 2017) as against a regulatory requirement of 11.025% which includes Capital Conservation Buffer of 1.875%, and an additional requirement of 0.15% on account of the Bank being identified as a Domestic Systemically Important Bank (D-SIB).

Tier 1 CAR was at 15.6% as of September 30, 2018 compared to 13.3% as of September 30, 2017. Common Equity Tier 1 Capital ratio was at 14.7% as of September 30, 2018. Risk-weighted Assets were at ` 8,86,489 crore (as against ` 7,38,465 crore as at September 30, 2017).

On July 17, 2018, the Bank made a preferential allotment of 3,90,96,817 equity shares to Housing Development Finance Corporation Limited at an issue price of ` 2,174.09 per equity share aggregating to ` 8,500 crore. On August 2, 2018,  the Bank  concluded a Qualified Institutions Placement (QIP) of 1,28,47,222 equity shares at a price of ` 2,160 per equity share aggregating to ` 2,775 crore and an American Depository Receipt (ADR) offering of 1,75,00,000 ADRs (representing 5,25,00,000  equity shares) at a price of USD 104 per ADR, aggregating to USD 1,820 million.  Consequent to the above issuances, total equity (including share premium) increased by ` 23,590 crore, net of share issue expenses.

NETWORK

As of September 30, 2018, the Bank’s distribution network was at 4,825 banking outlets and 13,018 ATMs across 2,718 cities / towns as against 4,729 banking outlets and 12,259 ATMs across 2,669 cities / towns as of September 30, 2017. Of the total banking outlets, 53% are in semi-urban and rural areas. Number of employees were at 94,907 as of September 30, 2018 (as against 86,457 as of September 30, 2017).

ASSET QUALITY

Gross non-performing assets were at 1.33% of gross advances as on September 30, 2018, as against 1.33% as on June 30, 2018 and 1.26% as on September 30, 2017. Coverage ratio as on September 30, 2018 was 70%. Net non-performing assets were at 0.4% of net advances as on September 30, 2018. The Bank held floating provisions of ` 1,451 crore as on September 30, 2018. Total provisions (comprising specific provisions, general provisions and floating provisions) were 117% of the gross non-performing loans as on September 30, 2018.