Sunday Observer Online
SUNDAY OBSERVER - SILUMINA eMobile Adz    

Home

Sunday, 26 May 2013

Untitled-1

observer
 ONLINE


OTHER PUBLICATIONS


OTHER LINKS

Marriage Proposals
Classified
Government Gazette

HDFC Bank posts impressive 1Q results

Housing Development Finance Corporation Bank of Sri Lanka (HDFC Bank) has registered an after Tax Profit of Rs. 38.4 million for the 1Q ending March 31, 2013 as against Rs. 4.9 million during the corresponding period in 2012.

The operating profit before tax was Rs. 84.9 million as against Rs. 27.3 million compared with the corresponding period of the previous year.

The bank's deposit base has increased from Rs. 11.9 billion to Rs. 14.5 billion during the 1Q of 2013 registering year-on-year (YOY) growth of 22%.

The advances increased from Rs. 14.6 billion to Rs. 16.8 billion showing the YOY growth of 15%.

Interest income improved by 26% in the period under review while interest expenses increased by 30% during this period due to rising interest rates and the increase of deposit base.

However, the Net Interest Income has shown 19% growth during the corresponding period. Fee based income of the bank has also shown an improvement registering a growth of 52% when compared with 1Q during the past year.

The bank also reduced operating expenses by 19% during 1Q 2013 as against the previous year.

The bank's Tier I Capital Adequacy Ratio stood at 18.4% while the Total Capital Adequacy Ratio stood at 19.4% well above the regulatory requirement of the 5% and 10% as at March 31, 2013.

With the amendment of the HDFC Act in 2011, HDFC diversified business operations. The bank plans to enter the country's leasing, micro finance, SME and agriculture markets.

For this purpose, the bank has already initiated a funding scheme with the Central Bank and the bank hopes to negotiate more such funding arrangements with specialised agencies. Through the Central Bank's refinance scheme, HDFC is now ready to gain a foothold in Micro Finance, SME lending and agricultural financing.

The bank will continue to promote the successful gold loans scheme in 2013.

Expansion of the bank's savings base will continue to remain a priority for the bank, to mobilise an ongoing stream or low cost funding. The bank will continue to consolidate the operations in 2013 by improving the systems, processes and skills base to deal with future growth opportunities and compete successfully in an increasingly competitive market.

As part of this process, the bank has already strengthened the regional management structure by giving greater decision making autonomy to Regional Managers.

HDFC Bank was one of the first banks that published quarterly statements in line with IFRS Standards and the bank's final accounts for 2012 have been prepared in compliance with IFRS Standards.

The NPL Ratio saw an improvement at 20.52% as against 22.21% in 2011, due to the implementation of more stringent credit evaluation processes coupled with a strong emphasis on recoveries.

This includes NPL Loans backed by EPF Balances which are guaranteed by the Central Bank of Sri Lanka (CBSL).

The ratio excluding EPF category stands at 7.8% as at 31.12.2012 as against 11.37% in 2011. Improving technology remains a priority during the year to capitalise on efficiency and productivity gains that can be facilitated through the creative use of IT and other technologies. The bank is introducing new core banking solutions to meet future requirements. HDFC Bank's transparency in communications is gaining recognition. HDFC Bank won the ACCA Sustainability Reporting Award for the third consecutive year in the small scale category for the Bank's 2011 Annual Report.

This was HDFC's first integrated report in line with international integrated reporting standards and was also a first for the local banking industry.

EMAIL |   PRINTABLE VIEW | FEEDBACK

ANCL TENDER NOTICE - BOOK BINDING MACHINE
LANKAPUVATH - National News Agency of Sri Lanka
Telecommunications Regulatory Commission of Sri Lanka (TRCSL)
www.army.lk
www.news.lk
www.defence.lk
Donate Now | defence.lk
www.apiwenuwenapi.co.uk
 

| News | Editorial | Finance | Features | Political | Security | Sports | Spectrum | Montage | Impact | World | Obituaries | Junior | Youth |

 
 

Produced by Lake House Copyright © 2013 The Associated Newspapers of Ceylon Ltd.

Comments and suggestions to : Web Editor