HDFC Bank (HDFCBANK) Q4 96/97 earnings summary

Executive summary

• FY1996-97 net profit rose 99.7% YoY to Rs 40.50 crore; total income reached Rs 193.33 crore as operations entered their second full year.

• Growth combined rapid deposit and advance expansion with investment in branches, technology and infrastructure to build retail and other businesses.

Financial highlights

• Total income increased to Rs 193.33 crore from Rs 128.09 crore; net profit rose to Rs 40.50 crore from Rs 20.28 crore.

• Deposits grew 86.5% to Rs 1,279.07 crore; advances rose 56% to Rs 575.26 crore.

• Interest earned was Rs 161.74 crore and other income Rs 31.59 crore; operating expenses were Rs 42.18 crore.

• Actual total income of Rs 193.33 crore and profit after tax of Rs 40.50 crore exceeded prospectus projections of Rs 127.80 crore and Rs 39.90 crore, respectively.

Outlook and guidance

• A maiden 8% dividend was recommended; retention was also viewed as valuable for funding expansion and supporting future return on equity.

• Corporate banking was expected to sustain healthy growth amid liberalization; debt markets and retail banking were identified as growth opportunities.