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Tuesday, February 22, 2011

HDFC's PAT rises by 128%

HDFC Bank has incurred a net loss of Rs.6000 during the last quarter of 2010, against a net profit of Rs.25.3 million in corresponding quarter of the previous year. Despite this negligible loss in the last quarter, the bank's post tax profit for the 2010 financial year has risen 128 percent to Rs.247 million.

Earnings per Share (EPS) for the year were Rs.38, while the Book Value per Share was at Rs.279. However, the interim reports show that the EPS of Rs.38.1 was earned during the first quarter of 2010. Significant loan loss provision reversals were likely in this quarter against borrowers' EPF balance.

The NPA (Non Performing Advance) ratio remains worse than the average. HDFC focuses on long-term housing loans, and it has relatively high borrowings compared to deposits. Non-interest income also seems to be at modest levels when compared with other banks.

Arjun Alosius-controlled Perpetual Capital and Ishara Nanaykkara-controlled LOLC have become the second and the third largest shareholders of the company owning 14 and 13 percents respectively. As at March 31, 2010 neither of the parties had any material stake in the HDFC. National Housing Development Authority has retained the controlling stake of 49.7 percent of the bank.

source - www.dailynews.lk