HDFC Bank (HDFCBANK) Q4 00/01 earnings summary

Executive summary

• FY01 net profit rose 75.4% to Rs 210.12 crore; EPS increased to Rs 8.64 from Rs 5.93.

• Balance sheet growth accompanied wider distribution: deposits were Rs 11,658 crore and the network reached 131 branches across 53 cities.

• Prior-year P&L included the former Times Bank only from Feb. 26 to Mar. 31, 2000, so FY01 and FY00 results are not comparable.

Financial highlights

• Total income was Rs 1,444.99 crore; net revenues grew 60.4% to Rs 691.2 crore.

• Net interest income rose 65% to Rs 505.7 crore; other income increased 48% to Rs 185.5 crore.

• Profit before tax was Rs 315.06 crore and net profit was Rs 210.12 crore, versus Rs 120.04 crore in FY00.

• Deposits rose 38% to Rs 11,658.1 crore; advances increased 34% to Rs 4,636.7 crore.

• Total assets were Rs 15,617.33 crore, compared with Rs 11,731.03 crore at Mar. 31, 2000.

Outlook and guidance

• Capital raising was considered important for growth plans and expected tighter capital adequacy rules; shareholder approval was sought for the coming financial year.

• Lower small-savings rates were seen as a signal of declining system interest rates and potential relief for banks’ funding costs.

• Technology-led delivery, convenience and cost efficiency were identified as competitive advantages for banks going forward.