HDFC Bank Q4 PAT at Rs. 2,807 crore April 23, 2015 14:47 IST

HDFC Bank has recommended a dividend of Rs. 8 per equity share of Rs. 2 each out of the net profits for the year ended March 31, 2015. 

HDFC Bank today reported that its net profit for the quarter ended 31 March 2015 stood at Rs. 2,807 crore.

HDFC Bank has recommended a dividend of Rs. 8 per equity share of Rs. 2 each (i.e. 400 %) out of the net profits for the year ended March 31, 2015.

The Consolidated Results are as follows:

The Audited Consolidated results for the Year ended March 31, 2015:

The Group has posted a Consolidated profit for the year attributable to the group of Rs. 106888.90 million for the year ended March 31, 2015 as compared to Rs. 87434.90 million for the year ended March 31, 2014. Total Income has increased from Rs. 508525.20 million for the year ended March 31, 2014 to Rs. 602121.80 million for the year ended March 31, 2015.

HDFC Bank Ltd has announced the following results for the quarter & year ended March 31, 2015:

The Audited results for the Quarter ended March 31, 2015

The Bank has posted a net profit of Rs. 28069.10 million for the quarter ended March 31, 2015 as compared to Rs. 23265.20 million for the quarter ended March 31, 2014. Total Income has increased from Rs. 127899.80 million for the quarter ended March 31, 2014 to Rs. 155701.30 million for the quarter ended March 31, 2015.

The Audited results for the Year ended March 31, 2015

The Bank has posted a net profit of Rs. 102159.20 million for the year ended March 31, 2015 as compared to Rs. 84784.00 million for the year ended March 31, 2014. Total Income has increased from Rs. 490551.80 million for the year ended March 31, 2014 to Rs. 574662.50 million for the year ended March 31, 2015. 

Banking frauds rising, becoming more sophisticated: Deloitte India

Dealing with fraud can be constructive, and forward-thinking, and can position an organization in a leadership role within its industry or business 

The number of frauds in the banking sector as well as the level of sophistication of frauds have increased over the last two years, according to the findings of the Deloitte India Banking Fraud Survey Report, Edition II. 

Around 93 percent of the respondents pointed out a substantial rise in fraud incidents, with more than half of the respondents having witnessed more than a 10 percent increase (in fraud incidents) within their respective institutions.

Retail banking was identified as the major contributor to fraud incidents, with a majority of respondents indicating that they had experienced more than 50 fraud incidents in the retail banking segment in the last two years, with an average fraud loss of approx. INR 10 lakh per incident. In contrast, the non-retail segment saw an average of 10 fraud incidents with an approximate loss of INR 2 crore per incident, survey respondents indicated. A majority of respondents also said they were able to recover less than 25 percent of the reported fraud loss occurred.
 
“While the banking sector has been amongst the first sectors in India to adopt technology for business expansion and ease, they have not yet leveraged technology to the maximum extent, as part of their fraud risk mitigation efforts. This is possibly one of the reasons why the sector continues to see a rise in fraud as well as delays in detection and recovery. Institutions therefore need to step up, understand and tackle any challenges they face in fraud mitigation, before the magnitude of fraud becomes unmanageable.”said KV Karthik,Senior Director, Deloitte Forensic.
 
Some of the reasons that have been identified for the increase in fraud incidents include lack of oversight by line managers or senior management on deviations from existing processes, business pressures to meet unreasonable targets, lack of tools to identify potential red flags, and collusion between employees and external parties. Further, the common causes of frauds observed in Corporate Banking included diversion and siphoning of funds; whereas fraudulent documentation and absence/ overvaluation of collateral were cited as the main reasons for fraud in Retail Banking.
 
Detecting and responding to fraud
Approximately 30 percent of the survey respondents indicated that it took them 6-24 months to detect fraud, relying largely on customer complaints, anonymous tips received through whistleblowers and / or during account audit/ reconciliation. The action taken by a majority of the respondents, upon the detection of fraud, was to carry out an internal investigation, while some others also chose to report the incident to a law enforcement agency.
 
Adopting anti-fraud measures
Only half of the survey respondents indicated having an effective fraud risk assessment program; however, more than two-thirds of the survey respondents indicated that they had effective fraud control strategies and policies in place.“Traditionally banks have relied on guidance from the RBI to develop its fraud control policies. However, in light of the changing fraud landscape – such as rise in technology facilitated frauds – it is important that banks also focus on periodically assessing fraud risks and tweaking their fraud control policies to cover these fraud risks. For instance, only few banks appear to have a robust policy on combating phishing and identity theft”, Mr. Karthik said.
 
In addition to conducting periodic fraud risk assessments, banks can also focus on investing in an intelligence gathering mechanism and using dedicated forensic tools during an investigation process, the survey report stated. Interestingly, about 83 percent of the survey respondents indicated that they foresaw an increase in their investments in adopting anti-fraud measures, especially in the areas of fraud detection and monitoring systems, upgradation of technology to combat cybercrime, and fraud risk assessments and investigations.
 
Forensic data analytics emerging as the new frontier to prevent/ detect fraud
Survey respondents indicated that the top three challenges faced by banks in preventing fraud were the lack of customer/staff awareness about the impact of fraud; integration of data from various banking systems; and inadequate fraud detection tools.Most of these challenges can be addressed by implementing a dedicated proactive fraud detection/ analytics solution, as one in every three survey respondents were not entirely satisfied with their existing fraud detection/ analytics solution.
 
Emerging Trends
There has been a substantialincrease in the dependence on technology in the banking sector. With cybercrime continuing to increase in volume, frequency and sophistication, it is not surprising that the top three areas giving sleepless nights to the survey respondents were Internet Banking/ ATM fraud, E-Banking fraud and Identity fraud. In addition, mortgage portfolioalso appeared to be increasingly vulnerable to the risk of fraud, survey respondents indicated.
 
“While fraud is not a subject that any organization wants to deal with, the reality is that most organizations experience fraud to some degree. The important thing to note is that dealing with fraud can be constructive, and forward-thinking, and can position an organization in a leadership role within its industry or business segment”, said Mr.Karthik. 

Sasken Comm surges on share buy-back plans

According to a release issued by the company to the BSE, Sasken Communication board is scheduled to meet today April 23, 2015 to consider a proposal for share buy-back. 

Sasken Communications Technologies has surged in early deals on the BSE, after the company announced its plans for share buy-back.

According to a release issued by the company to the BSE, Sasken Communication board is scheduled to meet today April 23, 2015 to consider a proposal for share buy-back.

So far, the stock has jumped to a high at Rs. 259, and is now up over 2.5 percent at Rs. 256.

On the BSE 15,000 shares have been trading at the counter as compared to its two-week daily average volume of 71,000 shares.

Meanwhile, the BSE Sensex is up 174 points at 28,065.

Govt reconfirms appointment of Dinesh Sarraf as CMD of ONGC

Sarraf, 57, was appointed as the head of ONGC by the previous UPA government in August 2013

The government has reconfirmed the appointment of Dinesh K Sarraf as the chairman and managing director Oil and Natural Gas Corp (ONGC), according to a media report.

Sarraf, 57, was appointed as the head of ONGC by the previous UPA government in August 2013. He took charge of the post on March 1, 2014, the report added.

According to the rules, all appointments to the boards of public sector companies have to be reconfirmed after one year.

A letter reconfirming Sarraf’s appointment was issued on Monday, the report further said 

YES Bank: Levers in place for sustained growth momentum, says BofA-ML

BofA-ML estimates a near doubling of EPS between FY15-18E (CAGR of ~24%), driven by faster growth in loans, maximum margin expansion across banks and granularity in fee income 

Yes Bank ​recently ​reported 4Q earnings of Rs5.5bn, yoy growth of 28% and a 2% beat. Loan growth remains strong, at 35%+ yoy. Margins rose 20bps yoy (flat qoq). Low-cost deposits (CASA) grew by 29% yoy (13% qoq), within which savings grew by 35% yoy (15% qoq); CASA share in deposits, at 23%, was up ~50bp qoq. Finally, other income grew by 33% yoy; core fees grew at 20%+, with the share of branch / retail at 45%.





Following is an extract of the BofA-ML report on Yes Bank: 
 
While Yes Bank reported that headline gross/net NPL rose by 12/25% qoq, new slippages came in lower, at Rs520mn vs. Rs690mn. Coverage is high, at 72%, aside from which Yes also has contingent provisions of ~50bp of loans. Maximum concentration (~8% of customer assets) is in the ‘electricity sector’, but all in operating units. Outside of this, the book is well spread out in the range of <2-3%. This provides high comfort on the bank’s asset quality, besides project finance being <4-5% of loan book. New restructuring jumped by Rs2.1bn, to Rs3.8bn, although it is still the lowest vs. the average (50bp of loans). This is due to commissioning date issues in one ~Rs1.5bn road project, which should get up and running in the next few quarters.
 
​BofA-ML estimate​s​ a near doubling of EPS between FY15-18E (CAGR of ~24%), driven by faster growth in loans, maximum margin expansion across banks and granularity in fee income. ​BofA-ML​'s​ ​e​arnings are 2-3% ahead of consensus. ​BofA-ML also think​s​ that the valuation is very attractive, with Yes bank trading at ~2.5x FY16E book and ~2.9x trailing book for ~20-22% RoEs. ​BofA-ML reiterate​s​ Buy rating and raise​s​ PO to Rs1,100 (vs. Rs1,050) on the roll-forward, pegging it at ~2.9x 1-year forward (FY17), or ~1.0SD above the cycle average, on increasing comfort about operational earnings delivery and stable asset quality 

Yes Bank rallies on plans to raise funds

According to a release issued by the bank to the BSE, Yes Bank yesterday said that its board has approved a plan to raise up to $ 1 bn by selling stock in local or overseas markets to shore up its capital base. 

Yes Bank continues to trade on a gung-ho note on the BSE, on the back of positive news flow.

According to a release issued by the bank to the BSE, Yes Bank yesterday said that its board has approved a plan to raise up to $ 1 bn by selling stock in local or overseas markets to shore up its capital base.

Recently, Yes Bank reported 28 percent growth in Q4 net profit to Rs 550. 99 crore on year-on-year basis.

The stock has surged to a high of Rs. 828 so far on the BSE. Now, Yes Bank is up over 3.5 percent at Rs. 823.

The counter has register trades of around 234,000 shares as against the daily average volume of 407,000 shares in the past two weeks.

Meanwhile, the BSE Sensex has jumped 157 points at 28,047

Results to watch out for: Cairn India, HDFC Bank in focus

The results which are expected today are HDFC Bank, Cairn India, MRF, State Bank of Mysore, Cyient Ltd, SKF India. 

The results which are expected today are HDFC Bank, Cairn India, MRF, State Bank of Mysore, Cyient Ltd, SKF India, SQS India BFSI, Linde India, Mahindra & Mahindra Financial Services, R Systems International, Sasken Communication, International Paper APPM, Advanta Ltd, Cera Sanitaryware, Fervent Synergies, Gujarat Gas, HCL Infosystems. 

Sensex, Nifty clock gains at start

The BSE Mid-cap Index is trading up 0.75% at 10,625, whereas BSE Small-cap Index is trading up 0.59% at 11,396. 

At 9:27 AM, the S&P BSE Sensex is trading at 27,982 up 92 points, while NSE Nifty is trading at 8,465 up 35 points.

The BSE Mid-cap Index is trading up 0.75% at 10,625, whereas BSE Small-cap Index is trading up 0.59% at 11,396.

Tata Power, Tata Steel, Coal India, Maruti Suzuki India, Axis Bank and HDFC Bank are among the gainers, whereasWipro,
Sesa Sterlite, M&M, NTPC and L&T  are losing sheen on BSE.

The market is having a hell of a ride these days. When Finance Minister Arun Jaitley announced in the Union Budget that FIIs will not be required to pay Minimum Alternate Tax (MAT) from April 2015, there may have been a sigh of relief. What then is spooking the market and investor sentiment, especially those of FIIs? Apparently, the tax department and the government seem to believe that this tax can be levied for previous years, a report stated quoting the FM recently stating that the government can garner Rs. 40,000 crore through this tax. It took a conference call by Minister of State for Finance Jayant Sinha with FIIs to soothe frayed nerves. Sinha reportedly said investors could be "rest assured" that the government was acting to make it possible to invest with confidence, and would back a stable tax policy. That brought the indices hit by weather forecast into the green on Wednesday.

Rajya Sabha will reconvene for second part of Budget session. Global cues are healthy this morning. The Dow and S&P 500 gained around half a percent each while Nasdaq added 0.42%. Asian markets are also up. The India Meteorological Department said Southwest monsoon received by the country this year could be below normal, at 93% of the long-period average.

China's factory activity contracted at its fastest pace in a year in April. The flash HSBC/Markit Purchasing Managers' Index (PMI) fell to 49.2 in April, below the 50-point level that separates growth in activity from a contraction on a monthly basis.

Rakesh Jhunjhunwala has reportedly sold or trimmed his holdings in two stocks — Pipavav Defence and Offshore Engineering Company and Prime Focus after the Anil Dhirubhai Ambani Group (ADAG) bought large stakes in them.

The Hero Group's 'Mindmine Summit 2015' will get underway in New Delhi. Corporate honchos are expected to be in attendance here.

The Green Tribunal has deferred Delhi diesel vehicle ban case hearing to Mon. 

NITI Aayog’s Panagariya says he expect the economy to grow at 8-10% in 15 yrs. 

Tata Steel has denied a report that it is looking to buy Electrosteel Steels

Sun Pharmaceutical Industries clarified that Dilip Shanghvi from Daiichi Sankyo, we hereby state and confirm that the promoter, Mr. Dilip Shanghvi has neither purchased nor agreed to purchase any shares of our Company in the said transaction." The exchange has also sought clarification with regard to Sun Pharma's Promoter Dilip Sanghvi to buy partial stake for Rs. 22500 crs.

Fitch Ratings has assigned India-based Bharat Petroleum Corporation Limited's (BPCL; BBB-/Stable) proposed notes an expected rating of 'BBB-(EXP)'. The notes are to be issued out of its USD2bn medium-term note programme, rated 'BBB-'.The notes will constitute direct, unconditional, unsubordinated and unsecured obligations of BPCL.

Ashoka Buildcon Ltd has announced that QIP Committee of the Company at its meeting held on April 22, 2015, approved the issue and allotment of 2,84,41,411 Equity Shares of face value Rs. 5 each to eligible Qualified Institutional Buyers (QIB) at the issue price of Rs. 175.80 per Equity Share, aggregating approximately Rs. 500.00 Cr.

SpiceJet plans to ramp up its international operations from Cochin International Airport as it adds more aircraft. The airline plans to enhance its network from Kochi to the Gulf region with more flights, as well as increase connectivity to Male through Kochi from other points in India. 

Bank of England policymakers unanimous on holding rates

Bank of England policymakers expect the Consumer Prices Index to fall into negative territory in the coming months and to remain low this year 

Bank of England policymakers voted unanimously to hold interest rates at their current historic low of 0.5% again in April, according to the minutes of BoE held on 8-9 April 2015.

 Bank policymakers expect the Consumer Prices Index (CPI) to fall into negative territory in the coming months and to remain low this year. And they remain concerned about low wage growth, the minutes show.

 The Bank minutes showed policymakers thought there was still a risk of "weak price pressures persisting for longer than would be consistent with bringing inflation back to target within two years", 

despite evidence that the eurozone economy was beginning to show signs of improvement. 

Indices to open positive

The market is having a hell of a ride these days.

The market is having a hell of a ride these days. When Finance Minister Arun Jaitley announced in the Union Budget that FIIs will not be required to pay Minimum Alternate Tax (MAT) from April 2015, there may have been a sigh of relief. What then is spooking the market and investor sentiment, especially those of FIIs? Apparently, the tax department and the government seem to believe that this tax can be levied for previous years, a report stated quoting the FM recently stating that the government can garner Rs. 40,000 crore through this tax. It took a conference call by Minister of State for Finance Jayant Sinha with FIIs to soothe frayed nerves. Sinha reportedly said investors could be "rest assured" that the government was acting to make it possible to invest with confidence, and would back a stable tax policy. That brought the indices hit by weather forecast into the green on Wednesday.

The outlook is a positive start. Rajya Sabha will reconvene for second part of Budget session.

 Global cues are healthy this morning. The Dow and S&P 500 gained around half a percent each while Nasdaq added 0.42%. Asian markets are also up.

 The India Meteorological Department said Southwest monsoon received by the country this year could be below normal, at 93% of the long-period average.

China's factory activity contracted at its fastest pace in a year in April. The flash HSBC/Markit Purchasing Managers' Index (PMI) fell to 49.2 in April, below the 50-point level that separates growth in activity from a contraction on a monthly basis.

Rakesh Jhunjhunwala has reportedly sold or trimmed his holdings in two stocks — Pipavav Defence and Offshore Engineering Company and Prime Focus after the Anil Dhirubhai Ambani Group (ADAG) bought large stakes in them.

The Hero Group's 'Mindmine Summit 2015' will get underway in New Delhi. Corporate honchos are expected to be in attendance here.

The Green Tribunal has deferred Delhi diesel vehicle ban case hearing to Mon.  

NITI Aayog’s Panagariya says he expect the economy to grow at 8-10% in 15 yrs. 

 

Tata Steel has denied a report that it is looking to buy Electrosteel Steels

Sun Pharmaceutical Industries clarified that Dilip Shanghvi from Daiichi Sankyo, we hereby state and confirm that the promoter, Mr. Dilip Shanghvi has neither purchased nor agreed to purchase any shares of our Company in the said transaction." The exchange has also sought clarification with regard to Sun Pharma's Promoter Dilip Sanghvi to buy partial stake for Rs. 22500 crs.

Fitch Ratings has assigned India-based Bharat Petroleum Corporation Limited's (BPCL; BBB-/Stable) proposed notes an expected rating of 'BBB-(EXP)'. The notes are to be issued out of its USD2bn medium-term note programme, rated 'BBB-'.The notes will constitute direct, unconditional, unsubordinated and unsecured obligations of BPCL.

Ashoka Buildcon Ltd has announced that QIP Committee of the Company at its meeting held on April 22, 2015, approved the issue and allotment of 2,84,41,411 Equity Shares of face value Rs. 5 each to eligible Qualified Institutional Buyers (QIB) at the issue price of Rs. 175.80 per Equity Share, aggregating approximately Rs. 500.00 Cr.

SpiceJet plans to ramp up its international operations from Cochin International Airport as it adds more aircraft. The airline plans to enhance its network from Kochi to the Gulf region with more flights, as well as increase connectivity to Male through Kochi from other points in India.

Wipro tumbled 6% to Rs. 544 after the company reported mere 4 percent growth in Q4 net profit at Rs. 2,142 crore on a year-on-year basis.

Century Textiles & Industries gained 3% at Rs. 736 amid reports that the company looks to divest its paper and cement business.

Symphony tanked over 11% to Rs. 2,795 despite showing strong Q3 performance.

Marico Kaya Enterprises rallied 2.2% to Rs. 1,919 on getting Bombay High Court approval for the scheme of arrangement between the company and Kaya.

Mastek Ltd stock ended 3% lower at Rs. 422 post Q4 results.The revenue for the quarter stood at RS. 276 crore.

8K Miles Software Services advanced nearly 2% to Rs. 717 on plans to acquire Cintel Systems for $ 3.75 million in cash & stock deal

DIC India stock ended 15% higher to Rs. 439 on the back of Q4 turnaround.

Marathon Nextgen Realty stock has hit 20% upper circuit at Rs. 214.30. Report said that the company is developing this 8-lakh sq-ft office building in three phases, of which two phases of 24 floors have already been completed.

Gitanjali Gems zoomed over 9.5% to Rs. 47.75 on the back of group consolidation plans. According to a release issued by the company to the BSE, the company's board approved the Scheme of Amalgamation of Gitanjali Exports with the company. The board also approved merger of three step down subsidiaries - Asmi Jewellery India, Spectrum Jewellery with Nakshatra Brands.

Results: HDFC Bank, Cairn India, MRF, State Bank of Mysore, Cyient Ltd, SKF India, SQS India BFSI, Linde India, Mahindra & Mahindra Financial Services, R Systems International, Sasken Communication, International Paper APPM, Advanta Ltd, Cera Sanitaryware, Fervent Synergies, Gujarat Gas, HCL Infosystems