'Considerable profit growth' for India's HDFC Bank

20 July 2011

HDFC Bank in India appears to be going against a general slowdown of lending shown by other institutions in the country, as it continues to report prosperous profit growth.

The lender has posted year-on-year increases of 33.7 per cent in the quarter to June 2011, with low provision coverage and strong loan expansion two of the main reasons for the momentum, the Economic Times reports.

Its loan book during this time was boosted by 29 per cent, while advances growth also performed solidly at 10.3 per cent.

According to the newspaper, the bank's superior asset quality has been a driving force behind the lender's successes with regard to improving profit margins.

Its non-performing assets, standing at 0.2 per cent of its advances, are the lowest in the country's banking industry, the source added.

HDFC Bank was incorporated in August 1994 and now has more than 2,000 branches and almost 6,000 cash machines dotted throughout India.

By Gary Cooper

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development