Housing Boom

May 22, 2007 (LBO) – Consolidated net profits at HDFC Bank, a mortgage lender, grew 35 percent while revenues grew 40 percent for the quarter ending March 2007. HDFC group net profit after tax rose to 113.8 million rupees from 83.9 million in the first quarter this year while total revenue increased to 521 million from 371 million rupees.

Interest income went up 41 percent to 507 million rupees.

The interest costs on deposits increased by 137 percent to 104 million rupees while total interest expenses went up 47.7 percent to 231 million in a rising interest rate environment as the Central Bank tightened monetary policy.

Total deposits increased 60 percent to four billion rupees with time deposits increasing to 3.8 billion rupees from 2.2 billion.

Money allocated for staff pensions also increased 189 percent to 13.8 million rupees from 4.8 million.

At the end of March 2007, the bank had 9.7 billion rupees of performing advances and assets of 11.9 billion rupees.

Bank’s housing loans increased by 16.7 percent to 9.1 billion rupees.

Bank Net assets rose 11.2 percent to 11.9 billion rupees.

With the rise in risk assets the