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Housing Development Finance Corporation Bank of Sri Lanka (HDFC Bank) has recorded Rs. 388.9 million profit before tax (PBT) in the 1H of the year 2015 as against Rs. 310.5 million in the corresponding period of 2014, an increase of 25 percent.
The profit after tax (PAT) had been Rs. 276.2 million as against Rs. 185.1 million, an increase of 49 percent.   


The interest income has increased from Rs. 2118 million to Rs. 2260 million, an increase of 6.7 percent.  The net interest income of the Bank has increased from Rs. 856.3 million to Rs. 1,050.6 million, an increase of 22.7 percent.
The interest expenses have been reduced to Rs. 1209.9 million from Rs. 1262.2 million due to re-pricing of deposits.  The Operating Expenses has increased to Rs. 622.2 million from Rs. 513.5 million, an increase of 21 percent due to additional staff costs and expenditure incurred due to Branch expansion.  This was revealed by Nimal Mamaduwa, Chief Executive Officer/GM of the Bank in a press release announcing the Banks 1H year 2015 results.



The Bank’s customer deposit base increased from Rs. 24.5 billion to Rs. 26.1 billion during the first six months, an increase of 6.8 percent.  The loan book increased from Rs. 23.3 billion to Rs.  24.6 billion, an increase of 5.2 percent.  
The Return on Assets (ROA) stood at 2.71 percent as against 2.51 percent as at 31st December 2014, whilst the Return on Equity (ROE) increased from 13.7  to 18.3 percent.  

''The interest expenses have been reduced to Rs. 1209.9 million from Rs. 1262.2 million due to re-pricing of deposits.  The Operating Expenses has increased to Rs. 622.2 million from Rs. 513.5 million, an increase of 21 percent due to additional staff costs and expenditure incurred due to Branch expansion''

The Bank’s T1 capital and Total Capital Adequacy Ratio stood 13.08 percent and 12.29 percent respectively which are well within the regulatory requirements, although the ratios have been marginally reduced due to the credit growth shown in the first half of 2015.  The Bank also maintains a healthy statutory liquid asset ratio of 30.6 percent as against the regulatory requirement of 20 percent.  
During the first half year of 2015, the Bank was able to establish two new branches in Polonnaruwa and Kiribathgoda under the Branch expansion programme thereby making the total network to 38 branches.  The Bank is working closely with divisional secretariats and other government agencies through our branches to identify new growth areas and reach communities which are underserved in terms of formal financial solutions.


The bank’s strategy of diversifying our product portfolio initiated in the year 2013 delivered significant gain for the Bank in terms growth and profitability. The product diversification was focused on the launch of several micro finance solutions to extend micro housing loans which has helped the beneficiaries to improve and upgrade their shelter into a liveable home and improving their standard of living.  The Bank has entered into MOUs with CBSL in implementing several loan schemes such as Prosperity Loan Schemes (Saubhagya for the purpose of providing credit facilities for agriculture, livestock, micro, small and medium scale enterprises and commercial scale dairy Development Loan Scheme (CSDDLS).  These schemes have been satisfactory utilized through our Branch network.