MUMBAI:
The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarter ended June 30, 2016, at their meeting held in Mumbai. The accounts have been subjected to a ‘Limited Review’ by the statutory auditors of the Bank.
FINANCIAL RESULTS:
Profit & Loss Account: Quarter ended June 30, 2016
The Bank’s total income for the quarter ended June 30, 2016 was ` 19,322.6 crores, as against ` 16,503.0 crores for the quarter ended June 30, 2015. Net revenues (net interest income plus other income) increased by 19.6% to ` 10,588.1 crores for the quarter ended June 30, 2016 from ` 8,850.7 crores in the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the quarter ended June 30, 2016 grew by 21.8% to ` 7,781.4 crores, from ` 6,388.8 crores for the quarter ended June 30, 2015, driven by average assets growth of 20.2% and a net interest margin for the quarter of 4.4%.
Other income (non-interest revenue) at ` 2,806.6 crores was 26.5% of the net revenues for the quarter ended June 30, 2016 and grew by 14.0% over ` 2,461.9 crores in the corresponding quarter ended June 20, 2015. The four components of other income for the quarter ended June 30, 2016 were fees & commissions of ` 1,977.9 crores (`1,713.0 crores in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of ` 314.5 crores (` 348.0 crores for the corresponding quarter of
the previous year), gain on revaluation / sale of investments of ` 276.9 crores (`125.9 crores in the corresponding quarter of the previous year) and miscellaneous income including recoveries of ` 237.4 crores (` 275.0 crores for the corresponding quarter of the previous year).
Operating expenses for the quarter ended June 30, 2016 were ` 4,768.9 crores, an increase of 19.2% over ` 4,000.8 crores during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 45.0% as against 45.2% for the corresponding quarter ended June 30, 2015.
Provisions and contingencies for the quarter ended June 30, 2016 were ` 866.7 crores (consisting of specific loan loss provisions ` 832.3 crores and general / floating / other provisions ` 34.4 crores) as against ` 728.0 crores (consisting of specific loan loss provisions ` 557.5 crores and general / floating / other provisions ` 170.5 crores) for the corresponding quarter ended June 30, 2015.
After providing ` 1,713.6 crores for taxation, the Bank earned a net profit of ` 3,238.9 crores, an increase of 20.2% over the quarter ended June 30, 2015.
Balance Sheet: As of June 30, 2016
Total balance sheet size as of June 30, 2016 was ` 755,100 crores as against ` 629,322 crores as of June 30, 2015. Total deposits as of June 30, 2016 were ` 573,755 crores, an increase of 18.5% over
June 30, 2015. CASA deposits saw healthy growth with savings account deposits growing by 22.2% over the previous year to reach ` 152,701 crores and current account deposits growing by 13.7% over the previous year to reach ` 76,082 crores.
Time deposits were at ` 344,972 crores an increase of 18.0% over the previous year resulting in CASA deposits at 39.9% of total deposits as on June 30, 2016. Advances as of June 30, 2016 were ` 470,622 crores, an increase of 23.2% over June 30, 2015. As per regulatory [Basel 2] segment classification, both domestic retail loans and wholesale loans grew by 24.5% (as per internal business classification, the growth was 24.9% and 23.7% respectively). The domestic loan mix between retail:wholesale was 53:47.
Capital Adequacy:
The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines, was at 15.5% as at June 30, 2016 (15.7% as at June 30, 2015) as against a regulatory requirement of 9%. Tier-I CAR was at 13.3% as on June 30, 2016 compared to 12.8% as at June 30, 2015.
NETWORK
As of June 30, 2016, the Bank’s distribution network was at 4,541 branches and 12,013 ATMs as against 4,101 branches and 11,962 ATMs as of June 30, 2015. 54% of branches are now in the Semi-urban and rural locations.
ASSET QUALITY
Gross non-performing assets (NPAs) were at 1.04% of gross advances as on June 30, 2016, as against 0.95% as on June 30, 2015. Net non-performing assets were at 0.3% of net advances as on June 30, 2016. Total restructured loans were at 0.1% of gross advances as of June 30, 2016.
