HDFC Bank records impressive performance

Housing Development Finance Corporation Bank (HDFC Bank) recorded on impressive performance during 2013. The Bank recorded a profit before tax of Rs. 306.9 million in 2013 as against Rs. 125.8 million in 2012 (subject to finalising of audit). The profit after tax was Rs. 233.5 million as against Rs. 55.5 million in the previous year, an increase of almost 320%.

During 2013 HDFC Bank changed its traditional business model and introduced a number of new short term lending products that has widened the scope of their portfolio and opened new revenue streams.

The new product segments include micro finance, SME loans, education loans and leasing. The 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 leveraged on HDFC's past experience in working with rural and urban populations.

The Bank's Interest Income has grown up from 2.634 billion to Rs. 3.528 billion in 2013 an increase of 34%. The Net Interest Income has gone up from Rs. 829.4 billion to Rs. 1.058 billion an increase of 28%. The bank's loan portfolio has risen from Rs. 15.9 billion to Rs. 19.7 billion an increase of 23.7%.

The deposit base in 2013 has grown to 18.9 billion as against Rs. 14.6 billion, an increase of 28.7%. The Return on Assets (ROA) stood at 1.62% 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 for the low and middle income sector and public servants.

Under this scheme loans are provided at the concessionary rate of 13% per annum and have a ceiling of Rs. 500,000 per person.

Another program is the Central Bank of Sri Lanka's refinance scheme to rebuild damaged housing in the North and the East.

HDFC Bank met the capital adequacy set by the Central Bank in 2013. As at December 31, 2013, Tier 1 and Tier 2 capital stood at 16.52% and 17.08% as against the regulatory 5% and 10%.

The Bank also maintains a healthy Statutory Liquid Assets Ratio of 28.74% as against the regulatory 20%.

The bank's first listed debenture raised Rs. 2 billion. It was oversubscribed to the value of Rs 4 billion on the opening day which is an affirmation of the HDFC Brand equity.

The debenture was to raise long term funds and manage the assets and liability gap and use it for lending.

The Bank continued to maintain a healthy portfolio of advances supported by a high quality credit evaluation process. The Bank's NPL as at end December 2013 was 7.26 as against 7.96 in 2012, excluding the EPF category of which recovery is guaranteed by the Central Bank.