HDFC Bank (HDFCBANK) Q4 95/96 earnings summary

Executive summary

• First full year of banking operations; actual results exceeded prospectus forecasts, with total advances of Rs 3,686.18 million and investments of Rs 3,142.78 million at 31 March 1996.

• Total income was Rs 1,290.90 million and net profit Rs 202.82 million for FY1995-96; no non-performing assets were reported at year-end.

Financial highlights

• Total income Rs 1,290.90 million vs prospectus forecast Rs 749 million; net profit Rs 202.82 million vs forecast Rs 179 million.

• Profit before depreciation and tax Rs 297.98 million vs prospectus forecast Rs 225.50 million.

• Deposits Rs 6,856.96 million at 31 March 1996; excluding prior-year Stockinvest deposits of Rs 3,521.50 million, deposits grew 137% YoY.

• Advances increased to Rs 3,686.18 million from Rs 980.02 million; prior-year results covered only three months of operations and are not comparable.

Outlook and guidance

• Planned continued investment in branch expansion, technology and infrastructure to build foundations for future business and shareholder value; no dividend recommended for FY1995-96.

• Retail deposit base was expanding by 2,500 accounts per month from a base exceeding 19,000; retail customers viewed as a source of stable long-term funding.

• Positioned to provide custodial services amid an expected revival in capital markets during 1996-97.