HDFC Bank posted a net profit of Rs 343.57 crore in the quarter ended 31 March 2007, as against Rs 263.21 crore for the March 2006 quarter. Total Income increased to Rs 2384.19 crore compared with Rs 1682.65 crore in the March 2006 quarter.
The results were declared after trading hours on Tuesday (24 April 2007). The private sector bank also recommended a dividend of Rs 7 per share for the year ended 31 March 2007.
In late-December 2006, HDFC Bank raised the benchmark prime lending rate (BPLR) by a steep 150 basis points. The bank also increased its deposit rates by 50-75 basis points, following a similar increase in June 2006. But only a small proportion of HDFC Bank’s loans are linked to the PLR. This is because most of the bank’s retail and corporate lending is done at fixed rates, and is not directly linked to the BPLR.