India’s HDFC Bank posts its best profit growth in more than a year
HDFC Bank, India’s second-biggest private sector lender, yesterday reported its strongest profit growth in more than a year, and highlighted more gains for the booming industry on robust loan demand.
HDFC Bank and its bigger rivals State Bank of India and ICICI Bank are benefiting from improving business and consumer confidence in an economy set to grow about 8.5 per cent in the year that began in April.
HDFC Bank matched estimates with a 34 per cent rise in April-June net profit to IR (Indian rupees) 8.12bn (£0.11bn) from IR6.06bn as companies and consumers took advantage of a fast-growing economy.
The bank expects strong demand from mortgage borrowers and improving asset quality to help it exceed the sector’s 20 per cent credit growth estimated in the year ending March 2011. “There has been a steady increase in the asset quality as a result of which the provisions and contingencies are lower,” said HDFC Bank’s executive director Paresh Sukthankar. “We do see corporate loan growth remaining strong.”
ICICI Bank, India’s second-largest lender, expects its loans to expand by a fifth in the fiscal year ending March, its chief executive said yesterday.