Friday 21 November 2014

HDFC Bank maintains growth momentum

Housing Development Finance Corporation of Sri Lanka (HDFC Bank) has recorded Rs 586.2 million profit before tax for the nine month period ending 30 September 2014 as against Rs 307.4 million in the corresponding period of 2013, an increase of 91%.The profit after tax had beenRs 295.4 million as against Rs 158.9 million in the previous year an increase of 86%. The bank's interest income has grown from Rs 2,576.6 million to 3,232.3 million an increase of 25%.

Housing Development Finance Corporation of Sri Lanka (HDFC Bank) has recorded Rs 586.2 million profit before tax for the nine month period ending 30 September 2014 as against Rs 307.4 million in the corresponding period of 2013, an increase of 91%.The profit after tax had beenRs 295.4 million as against Rs 158.9 million in the previous year an increase of 86%. The bank's interest income has grown from Rs 2,576.6 million to 3,232.3 million an increase of 25%.

The interest expense stood at Rs 1902.7 million as against Rs 1,778 million in the corresponding period during 2013 an increase of seven per cent. The net interest income has grown from Rs 796.7 million to 1,329.6 million an increase of 67%. The fee-based income has shown a decline from Rs 208.8 million to 170.6 million. This was revealed by the Chief Executive Officer/ GM, Nimal Mamaduwa in a press release announcing the bank's 3Q 2014 performance.


The bank's loan portfolio stood at Rs 22.3 billion as against Rs 19.7 billion as at 31 December 2013 an increase of 14%. The deposit portfolio has increased to Rs 23.4 billion from Rs 18.9 billion an increase of 24% during the first nine months of the year 2014.

The Return on Assets (ROA) stood at 2.64% as against 1.82% in the corresponding period 2013 an increase of 45% and the return on equity has risen from 8.13% to 13.8% an increase of 66%. HDFC Bank met the capital adequacy requirement stipulated by the CBSL as at 30 September 2014. T1 and T2 capital adequacy ratio stands at 14.5% and 14.9% respectively as against five per cent and 10% regulatory requirement. The bank also maintains statutory liquid asset ratio of 30.2% as against 20% regulatory requirement as at the end of the 3Q 2014.

The above-mentioned satisfactory financial indicators have become possible mainly due to the banks product diversification plans implemented in the year 2013 and 2014. Under the Dirimaga Micro Finance Loan Scheme the Bank had been able to successfully identify micro entrepreneurs to commence self-employment schemes or to improve existing small businesses. The bank is also engaged in commercial scale dairy development loan scheme (CSDDLS) throughout its 33 branches islandwide with the participation of CBSL on several training programmes for entrepreneurs and financial literacy programmes on regional basis.

During the 1Q 2014 the bank commenced implementation of 'HDFC Leasing' which has been particularly focused for small and medium entrepreneurs who require commercial vehicles, three-wheelers, motor cycles and vehicles for professionals and others. HDFC Bank housing finance facilities are available to all socio-economic groups in the country. 


Over the year HDFC has strategically distributed its loan portfolio proportionately among all income segments of the population. Over 70% of the loan portfolio has been distributed to the low and middle income populations that represent 60% to 70% of the population. As a result, HDFC's main market is the low and mid-income sectors which include rural and urban populations.

The bank expects to open branches in Nittambuwa, Nikawaratiya, Ambalangoda, Polonnaruwa, Kiribathgoda and Deniyaya in the near future for which regulatory approval has already been obtained.
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