HDFC Bank expands retail portfolio

MUMBAI APRIL 15. HDFC Bank has registered a 30.48 per cent rise in net profit at Rs. 387.60 crores for the fiscal ended March 31, 2003 against Rs. 297.04 crores in the previous fiscal. The board has recommended a 30 per cent dividend against 25 per cent. Total income rose to Rs. 2,496.07 crores from Rs. 2,036.24 crores.

In the fourth quarter ended March, the net profit was higher at Rs. 116.62 crores against Rs. 90.24 crores. Total income shot up to Rs. 686.07 crores from Rs. 566.02 crores.

Deposits have increased by 27 per cent to Rs. 22,376 crores from Rs. 17,654 crores. Savings account deposits rose by 58 per cent to Rs. 4,663 crores from Rs. 2,957 crores. Advances have risen by 72.5 per cent to Rs. 11,755 crores with total retail advances constituting 29 per cent (21 per cent) at the end of March 31, 2003.

The bank has, in line with International Accounting Standards, amortised the commissions paid net of commissions/ subventions received, over the tenor of the loans on a yield to maturity basis. Consequently, the net profit for the fourth quarter and the financial year ended March 31, 2003 was higher by Rs. 4.79 crores and Rs. 17.96 crores respectively.

HDFC Bank held Rs. 2,160 crores of investments in securitised paper where the underlying assets were retail loan receivables (for commercial vehicle, car and mortgage loans) and collateralised loan obligations.

The capital adequacy ratio stood at 11.1 per cent of which Tier-I CAR was 9.5 per cent. The net non-performing assets stood at 0.4 per cent of advances and 0.3 per cent of total customer assets.

The total number of retail accounts increased from 22 lakhs to over 31 lakhs. The number of branches (including extension counters) has been increased to 231 from 171 and ATMs to 732 from 479.

With a significant expansion in the geographical coverage of retail loan products such as car and personal loans and the launch of new products such as two wheeler loans, total retail asset portfolio has more than doubled to Rs. 3,163 crores from Rs. 1,430 crores. Including the commercial vehicle loan portfolio, which is a mix of retail and transport operator finance, total retail loans touched Rs. 3,441 crores.

The credit card business which is just over a year old now, has presence in 18 cities with total number of cards issued at 1.81 lakhs.

The board also approved the grant of one crore stock options to employees and directors of the bank, subject to the approval of the shareholders. — PTI

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