HSBC reports 41% rise in net profits to Rs 1192cr

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The Hongkong and Shanghai Banking Corporation Limited - India Branches (the bank) reported a 50% increase in total income and 41% rise in net profits, for year ended 31 March 2008.  Total income rose to Rs 7,096 crore from Rs 4,720 crore in 2006-07, whilst net profit after tax rose to Rs 1,192 crore, from Rs 846 crore in the previous year.  

Total assets increased 38% to Rs 75,921 crore from Rs 54,929 crore in the previous year, with deposits increasing by 22% to Rs 42,620 crore and advances rising by 29% to Rs 29,944 crore.  Despite this growth, the bank's cost income ratio improved by 3% year on year from 45% in 2006 / 07 to 42% in 2007 / 08.

The bank's capital and reserves increased by Rs 2,299 crore to Rs 8,459 crore. In recognition of the opportunities in the Indian market and the bank's performance to date, the HSBC Group injected fresh capital of Rs 788 crore to support the growth in the bank's operation in India during 2007 / 08.  The bank continues to maintain a strong Capital Adequacy ratio, which on Basel I norms stood at 10.59% as at 31 March 2008 as compared to 11.06% as at 31 March 2007.  The bank has migrated to Basel II norms and its Capital Adequacy ratio on these norms as at 31 March 2008 stood at 11.46%.

Naina Lal Kidwai, Group General Manager and Country Head, HSBC India said, "The consistent strong performance recorded by the bank in India speaks volumes about the strengths of our individual businesses, the comprehensive range of products we offer to meet the growing needs of our customers, the innovative abilities of our employees and the trust placed by our customers in our brand."

The financial statements for the year ended 31 March 2008 comprise the accounts only of the India branches of The Hongkong and Shanghai Banking Corporation Limited ('the Bank'), which is incorporated and registered in the Hong Kong Special Administrative Region. The financial statements are prepared and presented under the historical cost convention and accrual basis of accounting, except where otherwise stated, and in accordance with the generally accepted accounting principles and statutory provisions prescribed under the Banking Regulation Act, 1949, circulars and guidelines issued by the Reserve Bank of India ('RBI').

 

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