HDFC Bank’s PAT grows 320%

HDFC Bank’s CEO/GM, Nimal J B Mamaduwa stated that the Bank recorded a profit before tax of Rs. 306.9 Mn in 2013 as against Rs. 125.8 Mn in the year 2012.  (subject to finalizing of audit).  The profit after tax had been Rs. 233.5 Mn as against Rs. 55.5 Mn in the previous year which is an increase of almost 320%.

‘During the year 2013 HDFC Bank was able to change it’s traditional business model and introduced a number of new short term lending products that has widened the scope of their portfolio and opened up new growing revenues streams for the Bank.  These new product segments include Micro Finance, SME Loans, Education Loans and Leasing.  This range of new products has placed HDFC Bank in a highly competitive footing with other Banks with a more resilient portfolio and much wider field of operations. The micro credit and SME credit lines have effectively leverage HDFC’s past experience in working with rural and urban populations, a press release said.

‘The Bank’s Interest Income has grown up from Rs. 3.528 Bn in 2013 from 2.634 Bn which is an increase of Rs. 34%.  The Net Interest Income had gone up from Rs. 829.4 Bn to Rs. 1.058 Bn an increase of 28%.  The Banks loan portfolio has risen from Rs. 15.9 Bn to Rs. 19.7 Bn an increase of 23.7% as against the previous year. The deposit base in the year 2013 has grown up to 18.9 Bn as against Rs. 14.6 Bn an increase of 28.7%.

‘The Return on Assets (ROA) stood at 1.62% during the period under review as against 0.86% in the previous year and Return on Equity (ROE) increased from 2.32%to 8.90%.

‘HDFC Bank continued to support Government development initiatives in 2013. The Bank collaborated closely with the Ministry of Construction, Engineering Services, Housing and Common Amenities to implement the "Janasevena" Scheme aimed at low and middle income sector and government servants. Under this scheme the loans are provided at the concessionary rate of 13% per annum and have a ceiling of Rs. 500,000 per person. Another such programme is the Central Bank of Sri Lanka’s refinance scheme to rebuild damaged housing in North and East during war time.

‘HDFC Bank met the capital adequacy requirements stipulated by the Central Bank of Sri Lanka in 2013. As at 31st December 2013, Tier 1 and Tier 2 capital stood at 16.52% and 17.08% as against the 5% and 10% regulatory requirement. The Bank also maintains a healthy Statutory Liquid Assets Ratio of 28.74% as against the regulatory requirement of 20%. 

‘The noteworthy development in 2013 was the Bank’s first highly successful listed Debenture that raised Rs. 2 Billion which was oversubscribed to the value of Rs 4 Bn on the opening day itself which is an affirmation of the HDFC Brand equity.  The Bank’s objective for the Debenture was to raise long term funds and manage the assets and liability gap and utilize same for the lending.www.island.lk