HDFC Bank continues with its stellar performance in the second quarter ended September 2002. Fueled by strong focus on retail banking, interest income grew by 17% and profits jumped over 29% YoY for 2QFY03. However, the performance was not as impressive as its June quarter.
Income from operations
Net interest income
Operating Profit Margin (%)
Provisions and contingencies
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (m)
Diluted Earnings per share*
During the June quarter, the bank reported a 23% growth in interest income and higher growth in profits at 33%. Not only that, the operating margins of the bank had improved significantly to 14.3% during 1QFY03. However, in 2QFY03 HDFC Bank saw its operating margins dip from 11.5% last year to 10.2%, indicating a competitive environment in the banking sector.
During the first half of FY03, the bank's growth in each of its major business franchise and in particular in the retail business was driven primarily by customer acquisition, accelerated geographic expansion and higher levels of penetration. The total number of branches (including extension counters) and ATMs increased by 32 and 144 respectively, in 1HFY03.
Despite ongoing network expansion, HDFC Bank managed to maintain its cost to income ratio at 45%, which is in line with its private sector peers. This coupled with the bank's higher fee based income fueled its bottomline growth. Credit quality of the bank remains amongst the best in the industry with gross NPAs at around 3% and Net NPAs at around 1% of customer assets.
Interest on advances
Income on investments
Interest on balance with RBI
At current market price of Rs 195 HDFC Bank is trading on a multiple of 16x 1HFY03 annualised earnings and Price/Book value ratio of 2.8x. The bank's valuations are one of the highest in the sector due to its ability to maintain strong profit growth and superior asset quality. Its capital adequacy ratio has however, come down from 15% in June quarter to 13.3% currently.
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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