Over-regulation is a big hurdle in the success of Indian financial sector, HDFC Chairman Deepak Parekh said.
Mr. Parekh acknowledged that there was a need to be vigilant, but also warned that regulatory "overbearance" of the financial sector of India had become a key risk. He expressed his views on the topic during his speech at the Motilal Oswal Investors' conference on Monday.
Indian Stock Market closed at five month high on Monday. The BSE Sensex remained flat during most of the trading session but inched up in the last one hour of trade. BSE Sensex closed 75 points higher at 17633 and NSE Nifty closed at 5347, registering a gain of 27 points.
HDFC Bank Ltd has reported a 31 per cent rise in net profit to Rs 1,417 crore during the first quarter of the current financial year compared to Rs 1,085 crore recorded in the same quarter of the previous year.
The impressive growth in the bank’s net profit was mainly due to a strong growth in loans and interest and fee-based income. HDFC’s net interest income rose 22.33 per cent to Rs. 3,484.05 crore, while fee-based revenue increased 24 per cent to Rs1,143.3 crore from Rs922.7 crore in the same quarter of the previous year.
India's HDFC Bank has announced a reduction of 20 basis points in its minimum lending rate, which will come into effect now.
The bank said that the base rate will now come down to 9.8 per cent, while the benchmark prime lending rate will now be at 18.3 per cent. The bank's rate will now be below that of larger banks such as the State Bank of India (SBI) that stands at 10 per cent.
Mortgage giant Housing Development Finance Corporation (HDFC), on May 19, stated the board had forwarded its nod for lifting up the FII (foreign institutional investors) shareholding limit to 100%.
The move is precursor to forthcoming transfer of the form's warrants in equity by foreign investors, which would augment the total foreign institutional investors holding in HDFC further than the existing limit of 74%.
Housing Development Finance Corporation Ltd announced that it has posted an increase of 16% in its net profit during January- March quarter at Rs 1,326 crore from Rs 1,142 crore in the corresponding period last year.
The mortgage finance provider’s has also registered a growth of 24% in the net interest income.
In the meantime, during the fourth quarterly period, the company’s net interest income remained at Rs 1,866.76 crore as compared to Rs 1,510.6 crore reported in the corresponding period last year.
India's largest mortgage lender, the Housing Development Finance Corp. Ltd (HDFC) has said that its net profit has risen 16 per cent to Rs1,326.14 crore in the fourth quarter compared to Rs 1,141.95 crore for the quarter till march 2011.
The analysts were expecting the lender's net profit to rise to Rs1,274.3 crore in the quarter. The better than expected figures came as the bank recorded a 20 per cent increase in demand for home loans to Rs1,40,875 crore from Rs1,17,127 crore in the year earlier.
India's HDFC bank has reported an increase of 30.35% to Rs 1,453.08 crore in the fourth quarter till March 2012, compared to Rs 1,114.71 crore in the same quarter till previous year.
India's second largest private sector bank by assets announced its results, which were mostly in line with analyst expectations, on Wednesday. The increase was mainly due to higher interest income despite a fall in bank's provision for bad loans and tax contingencies.
Mumbai, April 18 - HDFC Bank, India's second-largest private lender, Wednesday reported a 30.4 percent increase in its net profit at Rs. 1,453.1 crore for the quarter ended March 31, 2012, led by higher interest rate margins and stable asset quality.
The bank had reported a net profit of Rs. 1,429.6 crore in the corresponding quarter of 2010-11.
The lender's total income increased 32.1 percent at Rs. 8,880 crore in the quarter under review from Rs. 6,724.3 crore in the corresponding quarter of 2010-11.
The HDFC Bank has said that it believes that the borrowing numbers are more credible than the forecasts for the financial year 2012.
The lender said that the government has budgeted a strong growth in capital expenditure during the coming year. A minimum slippage of Rs 30,000 cr could be expected in borrowing”, it said.
It pointed out that yields would face pressure due to the absence of open market option (OMO) activity. The real estate interest rates in the country are expected to be within manageable levels.
Global banking giant, Citigroup has decided to sell its stake in Housing Development Finance Corp. for 95.5 billion rupees or about $1.9 billion.
Citigroup sold 145.3 million shares at the rate of Rs. 657.56 per share, the company said in a statement. The price level is at 6.2 percent discount to the HDFC’s closing price. The sale resulted in an income of $1.1 billion for Citigroup before accounting for taxes.
Stock market expert Hemant Thukral from Aditya Birla Money has suggested buy call for HDFC Bank on decline. There has been good activity in some mid cap PSU banks in recent times. Some banks have given good returns in year 2012. However, Hemant Thukral is bearish on smaller PSU banks.
He expects HDFC Bank and ICICI Bank to perform better and suggests buy call for HDFC Bank on decline.
Technical expert Sudarshan Sukhani of s2analytics.com has suggested buy call for BPCL. BPCL is currently trading at Rs 650.
HDFC Bank has recorded a rise of more than 31.4 per cent in the third quarter year-on-year to Rs 1,430 crore backed by high growth in loans.
Net interest income for the country’s second largest private sector lender increased about 13 per cent Rs 2,945 crore compared to the same period previous year. The rise in net profit was a bit higher than expected rate of 28.5%.
HDFC has posted an increase in net profit of 20 percent in the second quarter backed by increased income from operations and profit on sale of investments for the firm.
The country's largest mortgage lender said that its net profit increased to 9.71 billion rupees from 8.08 billion int eh year ago period and its Income from operations rose to 40.77 billion rupees from 29.07 billion rupees in the second quarter last year.
Though Indian private banks like ICICI and HDFC favored the policy of dual interest rate housing loans, other banks are unlikely to go the same direction.
Perhaps the reason lies in the fact that there are many provisioning requirements which could pose a huge roadblock for banks, though ICICI and HDFC think otherwise.
Even the largest lender, SBI, had withdrawn its hands from the loan scheme, post acknowledging the same.
It has been reported that for the quarter ended on June 30, 2011, HDFC Bank booked a profit of Rs 1,085 which was just Rs 812 crore for the last year’s quarter. Mr. Paresh Sukthankar, Executive Director, HDFC Bank told that the stronger demand for working capital loan boosted the profit of the bank. He further said that the bank is expecting credit growth to increase by 4 to 5%.
The Bombay Stock Exchange showed HDFC bank at a growth by 33.7% in the revenue amounting to Rs 1,085 crore, in the first three months of the financial year up to June 2011. The total profit earned by June 2010, amounted to Rs 811 crore.
The income generated by the bank by the end of June 2011, increased to an amount of Rs 7,098 crore, which was 5,410 crore in the same period last year, an increase of 31.2%. The balance sheet of this year grew by 22.6%, amounting to Rs 2, 85,942 crore at the end of June.
The Chairman of Housing Development Finance Corporation (HDFC), Deepak Parekh announced about introducing an initial public offering (IPO) for its insurance department within a period of two years, at the annual general meeting (AGM).
As per Mr. Parekh, the rules of the Insurance Regulatory and Development Authority (IRDA) granted the insurers to have an IPO without three years profitability clause, the authorities will discuss about the scheme with their partners Standard Life.
Mumbai, May 10 : Housing finance major HDFC Tuesday reported a 23.27 percent rise in net profit for the quarter ended March 31 at Rs. 1,141.95 crore compared to Rs. 926.3 crore in the year-ago period.
Total income went up 30.5 percent to Rs. 3,784.8 crore for the quarter under review, according to a company statement.
For the whole of 2010-11, the net profit rose 25 percent to Rs. 3,534.96 crore compared to Rs. 2,826.49 crore for the year ended March 31, 2010.
Technical analyst Simi Bhaumik has maintained 'buy' rating on HDFC Bank Limited stock to attain an intra-day target of Rs 2393.
According to analyst, the investors can buy the stock with a stop loss of Rs 2335.
The stock of the company, on April 27, closed at Rs 2354.95 on the Bombay Stock Exchange (BSE).
Current EPS & P/E ratio stood at 84.70 and 27.81 respectively.
The share price has seen a 52-week high of Rs 2518 and a low of Rs 1816 on BSE.