HDFC Bank Q4 net up 31.4 per cent
Our Banking Bureau
17 April 2004

Mumbai: HDFC Bank has registered a 33 per cent increase in net profit for the fourth quarter ended March 31, 2004. The profit is at Rs 154.72 crore, up from Rs 116.62 crore in the corresponding period of the previous year. The board of directors have recommended a dividend of Rs 3.5 per share.

For the financial year ended March 2004, net profit increased by 31.4 per cent to Rs 509.5 crore, up from Rs 387.6 crore in the previous fiscal. Net profit computed in accordance with US GAAP (unaudited) for year ended March 31, 2004, showed a 35.3 per cent growth to Rs 475.5 crore (Rs 351.4 crore), said a release from HDFC Bank.

For the fourth quarter, total income of the bank increased 19.5 per cent to Rs 806.31 crore (Rs 678.85 crore). This was due to a 49-per cent increase in net interest income (i.e., interest earned - interest expended) to Rs 360.57 crore (Rs 242.03 crore) and a 15-per cent rise in other income to Rs 140.49 crore (Rs 122.02 crore). The cost of deposits of the bank decreased to 3.9 per cent (5.4 per cent).

"We plan to add 80-90 branches taking the branch network to 400 across 175-180 cities by the year-end. We expect growth to come from both corporate and retail businesses in the new fiscal," said Mr Paresh Sukthankar, Head-Credit & Market Risk, HDFC Bank.

For the full year, total net revenues (net interest income plus other income) increased by 41.2 per cent to Rs 1817.9 crore (Rs 1287.2 crore). The revenue growth was driven principally by an increase of 62.8 per cent in net interest income, mostly due to profitable retail lending and an increase in net interest margin by around 0.60 per cent to 3.8 per cent.

As part of other income, profits on sale of investments decreased to Rs 26.9 crore during 2003-04 (Rs 130.3 crore) due to lower trading gains booked on Government securities, said the release.

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