Housing Development Finance Corporation Bank of Sri Lanka (HDFC Bank) has recorded Rs. 310.6 m profit before tax in 1H 2014 as against 91.4 m in the corresponding period in 2013, an increase of 240%.
The profit after tax had been Rs. 185.1 m as against Rs. 50.5 m in 1H, an increase of 267%. The bank’s interest income has grown from Rs. 1,674.5 m to Rs. 2,118.6 m, an increase of 27%. The net interest income has grown up from Rs. 521.7 m to Rs. 856.4 m, an increase of 64%. The bank’s fee-based income has risen to Rs. 130.9 m in 1H as against 37.5 m in the corresponding period 2013, the bank’s CEO/GM Nimal Mamaduwa stated in a media release.
The bank’s loan portfolio stood at Rs. 21.5 b in 1H as against Rs. 19.7 b as at 31 December 2013 an increase of 9%. The deposit portfolio has risen to Rs. 22.3 b from Rs. 18.9 b, an increase of 18% during 1H 2014.
The Return on Assets (ROA) stood at Rs. 2.61 m in 1H 2014 and the Return on Equity (ROE) as at 1H 2014 stood at Rs. 13.49 m as at 30 June. The bank was able to improve the cost income ratio to 78.9% as at 30 June as against 92.6% in the corresponding period in 2013.
The HDFC Bank has met the capital adequacy requirement stipulated by the CBSL in 1H Tier 1 and Tier 2 capital and as at 30 June stood at 15.43% and 16% respectively as against 5% and 10% regulatory requirement. The bank also maintains a healthy statutory liquid asset ratio of 30.84% as against the minimum requirement of 20%.
The bank had been able to improve the performance in 1H as against the previous year six-month period mainly due to the change of the business model by introducing a number of new short-term products. Despite the sluggish loan growth in the industry, HDFC Bank was able to record 9% growth in advances in 1H due to its portfolio diversification.
The bank firmly believes that financing micro and SME enterprises and improving access to finance in the provinces remain important to minimise regional disparities and strengthen the economies of the provinces as expected by the Government.
The bank also recently signed a Memorandum of Understanding with the Central Bank of Sri Lanka for a Commercial Scale Dairy Development Loan Scheme (CSDDLS) by which the bank expects to grant credit facilities up to a maximum of Rs. 25 m per project for improving productivity of dairy projects.
During 1H 2014 the bank was able to commence the process of acquiring the technology applications to meet the present challenges. The bank wishes to complete a new core banking solution within the next few months ahead.
The bank also initiated a strategic planning process in the latter part of 2013 to be executed in 2014. Therefore the bank is now armed with a comprehensive and detailed strategy and action plan for the next three years to expedite growth.
Since the bank has now ventured into various product diversifications, whilst maintaining housing as core business, expansion of branches in outstation regions has also become a priority in the strategic plan.
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The profit after tax had been Rs. 185.1 m as against Rs. 50.5 m in 1H, an increase of 267%. The bank’s interest income has grown from Rs. 1,674.5 m to Rs. 2,118.6 m, an increase of 27%. The net interest income has grown up from Rs. 521.7 m to Rs. 856.4 m, an increase of 64%. The bank’s fee-based income has risen to Rs. 130.9 m in 1H as against 37.5 m in the corresponding period 2013, the bank’s CEO/GM Nimal Mamaduwa stated in a media release.
The bank’s loan portfolio stood at Rs. 21.5 b in 1H as against Rs. 19.7 b as at 31 December 2013 an increase of 9%. The deposit portfolio has risen to Rs. 22.3 b from Rs. 18.9 b, an increase of 18% during 1H 2014.
The Return on Assets (ROA) stood at Rs. 2.61 m in 1H 2014 and the Return on Equity (ROE) as at 1H 2014 stood at Rs. 13.49 m as at 30 June. The bank was able to improve the cost income ratio to 78.9% as at 30 June as against 92.6% in the corresponding period in 2013.
The HDFC Bank has met the capital adequacy requirement stipulated by the CBSL in 1H Tier 1 and Tier 2 capital and as at 30 June stood at 15.43% and 16% respectively as against 5% and 10% regulatory requirement. The bank also maintains a healthy statutory liquid asset ratio of 30.84% as against the minimum requirement of 20%.
The bank had been able to improve the performance in 1H as against the previous year six-month period mainly due to the change of the business model by introducing a number of new short-term products. Despite the sluggish loan growth in the industry, HDFC Bank was able to record 9% growth in advances in 1H due to its portfolio diversification.
The bank firmly believes that financing micro and SME enterprises and improving access to finance in the provinces remain important to minimise regional disparities and strengthen the economies of the provinces as expected by the Government.
The bank also recently signed a Memorandum of Understanding with the Central Bank of Sri Lanka for a Commercial Scale Dairy Development Loan Scheme (CSDDLS) by which the bank expects to grant credit facilities up to a maximum of Rs. 25 m per project for improving productivity of dairy projects.
During 1H 2014 the bank was able to commence the process of acquiring the technology applications to meet the present challenges. The bank wishes to complete a new core banking solution within the next few months ahead.
The bank also initiated a strategic planning process in the latter part of 2013 to be executed in 2014. Therefore the bank is now armed with a comprehensive and detailed strategy and action plan for the next three years to expedite growth.
Since the bank has now ventured into various product diversifications, whilst maintaining housing as core business, expansion of branches in outstation regions has also become a priority in the strategic plan.
www.ft.lk
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