Annual Report 2010 - Ministry of Finance and Planning

4 | State Owned Enterprises (SOE)HDFC Bank (HDFC)The bank’s assets base recorded amarginal increase of 7 percent in 2010.90 percent of the bank’s loans are forsmall and medium housing units. Thedeposit base of the bank has increasedup to Rs. 7.7 billion in 2010 from Rs 6.1billion in 2009. A before tax profit of Rs.189 million in 2010 reflected a significantincrease over previous year. The bank’snon-performing loans ratio recorded aslight decline in 2010 to 21.6 percent,but remained well above the industryaverage.Lankaputhra DevelopmentBank (LDB)LDB was set up in February 2006, totake the forefront in implementingGovernment’s policy to facilitatefinancing of small and mediumenterprises. While focusing ondevelopment oriented lending, the bankhas adopted a selective approach inexpanding its loan portfolio. Being anewly established bank, its presence isstill limited to several districts.The bank recorded a profit beforetax of Rs. 152 million in 2010, which islower than the profit of Rs. 250 millionrecorded in 2009. The total depositmobilized by LDB amounted to Rs. 295million in 2010 reflecting only a 5 percentincrease over the previous year. The totalassets base of the bank stagnated in2010 mainly due to the reduction in itsloan book by 13.7 percent in comparisonto the previous year. The bank’s high nonperforming ratio is a matter of seriousconcern that requires urgent actionto improve by concentrating on debtrecovery programmes.Table 4.10 > Key Performance Indicators of HDFC Bank2005 2006 2007 2008 2009 2010Number of Branches 20 20 21 21 26 28Number of Employees 290 205 286 289 355 425Assets (Rs. Bn.) 8.8 10.7 13.4 14.1 14.3 15.3Deposits (Rs. Bn.) 1.5 2.5 4.9 4.9 6.1 7.7Number of Deposits Accounts 62,407 71,538 74,637 142,407 177,354 212,914Corporate & Retail Lending (Rs. Bn.) 8.1 10.1 11.9 11.9 11.9 12.8Profit Before Tax (Rs. Mn.) 162 239 47 (94) 92 189Profit After Tax (Rs. Mn.) 117 172 21 (92) 57 135Capital Adequacy Ratio-1 (%) 42.1 37.6 31.0 25.4 17.6 22.1Capital Adequacy Ratio-11 (%) 42.4 37.8 31.8 26.5 18.7 21.2Non Performing Loans (Rs. Mn.) 1,465 1,892 2,099 2,500 2,743 2,840Non Performing Loan Ratio (%) 18.0 18.6 17.6 20.7 22.6 21.6Rating A A A BBB+ BBB+ BBB+Source: HDFC Bank212