HDFC Bank has declared a total income of Rs 1.38 bn (YoY growth of 49%) and a net profit of Rs 253 mn (YoY growth of 25.5%) for the quarter ended June 30th 1999. HDFC Bank has recorded a 82% jump in deposit base to Rs 36 bn over the period under consideration.
HDFC Bank, promoted by the Housing Development Finance Corporation Ltd., provides a range of banking services including working capital finance, trade services, corporate finance and merchant banking.
However, while the banks total income has grown by 48%, the expenditure growth has been at a higher 58%. The increase in interest income (up 61% YoY) has lagged the growth in interest expenditure (up 75% YoY), implying thinner margins for the bank. This fall in margins can be attributed to the subdued economic conditions, which resulted in lower growth in credit off take and consequently, lower growth in interest income.
The sharp increase in the deposit base only underscores the fact that the bank is fast gaining market share in the banking industry. A larger deposit base would result in economies of scale, thus boosting profitability.
HDFC Bank declared the results for the third quarter of financial year ending March 2017 (3QFY17). The bank has reported 18% YoY and 15% YoY growth in net interest income and net profits respectively in 3QFY17.
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