Bolstered by fee as well as interest income, the net profit of HDFC Bank, in Q2 2008-09 has increased by 44.80% to Rs 621.74 crore, after providing Rs 304.60 crore for taxation, when compared to its net profit for the corresponding period in the year 2007. However, HDFC Bank?s network in the last financial year did not include the branches of Centurion Bank of Punjab (CBoP). CBoP was taken over by HDFC Bank in the first quarter of the current financial year.

The gross profit and total income of the bank grew by 36.73% and 58.80% to Rs 1458.08 crore and Rs 5,407.90 crore respectively on quarter-on-quarter basis.

The bank?s provisioning and contingency amount for third quarter of the current fiscal increased by 25.68% to Rs 531.79 crore as against Rs 423.13 crore during the corresponding period in the last financial year. Gross NPA for the quarter went up to 1.90% from 1.20% as on December 31, 2007. The net NPA went up by 0.20% to 0.60%.

At the end of the third quarter of the current fiscal, the net interest margin of the bank was around 4.30%. The capital adequacy ratio stood at 13.70%.

Paresh Sukthankar, executive director, HDFC Bank said, ?On quarter-on-quarter basis, the bank?s provisioning towards contingencies and gross NPA for the quarter ended December 31, 2008 went high, mainly due to our CBoP takeover during the beginning of this fiscal.?

Sukthankar declined to comment on HDFC Bank?s business exposure to companies like Satyam and Maytas. ?However, we are closely monitoring the situation as we hold salary accounts of many Satyam employees. Also, we have facilitated auto loans to many of them. Recently, we lowered the unused limits of HDFC Bank credit cards allotted to Satyam employees. We will keep on reviewing their credit card limits at regular intervals.?

The interest income of the bank increased by 63.90% to Rs 4,468.50 crore on quarter-on-quarter basis. Net interest income rose by 37.70% to Rs 1,979.3 crore. Non-interest income rose by 38.37% to Rs 939.40 crore, mainly due to the fee earnings. The other two major components of non-interest income were derivatives revenues worth Rs 62.80 crore and the profit on revaluation or sale of investments worth Rs 232.10 crore.

As on December 31, 2008, the bank?s balance sheet size was Rs 1,83,185 crore, registering an

increase of 39.40% on quarter-on-quarter basis.

The deposits during the same period increased by 45.80% to Rs 1,44,862 crore. The assets (including advances, corporate bonds etc) during the same period increased by 34.0% to Rs 1,00,682 crore. Bank?s retail loans at Rs 59,647 crore formed 59.60% of the bank?s gross advances as on December 31, 2008.

The public shareholding in the bank went down to 80.60% as on December 31, 2008 from 76.70% as on December 31, 2007. HDFC Bank share, which was traded at Rs 1,727.80 on December 31, 2007, was traded on the Bombay Stock Exchange (BSE) at Rs 997.60 on December 31, 2008. HDFC Bank scrip?s closing price was Rs 977.35 on the BSE on Wednesday.

For the nine months ended December 31, 2008, HDFC Bank earned total income of Rs 14,257.4 crore as against Rs 8,892.6 crore earned during the corresponding period of the last financial year. Net profit of the bank rose by 44.20% at Rs. 1,614.1 crore for the period. HDFC Bank intends to open over 200 branches across the country in the next fiscal. However, the bank has no plans to open more branches in the foreign locations in the financial year 2009-10.