India’s second-largest private
sector lender, HDFC Bank, has posted a 31 percent increase in first
quarter net earnings to INR6.1 billion ($124.5 million), beating
forecasts, boosted by an increase in non-interest income which
soared by 76 percent compared with the first quarter a year

Profits before tax at the bank’s retail unit,
however, plunged 53 percent to INR1.44 billion for the quarter,
with provisions for bad debts almost doubling to INR6.59 billion,
compared with INR3.44 billion a year earlier.

The bank’s CASA (current accounts and savings)
ratio remained flat at 45 percent compared with a year ago (44.9
percent) while total retail deposits grew by 11.6 percent to
INR655.1 billion. The bank’s distribution network has expanded in
the past year, to reach 1,416 branches and 3,382 ATMs at 30 June,
compared with 1,229 outlets and 2,526 ATMs a year ago.

HDFC’s principal private sector rival, ICICI
Bank, has a network of 1,463 units and 4,721 ATMs, as a result of
its own recent branch expansion drive.