RICH RETURNS

Mumbai, June 25 (PTI): HSBC Ltd’s India branches have reported a 64 per cent rise in net profit at Rs 846 crore for the year ended March 31 against Rs 515 crore in the previous year.

“The continuing growth in profit has been driven by strong performances across business lines. The additional investment in the Indian operations is a clear reflection of the HSBC group’s desire to aggressively grow its Indian franchise,” HSBC India group general manager and CEO Naina Lal Kidwai said.

In 2006-07, HSBC invested Rs 1,437 crore in the Indian branches, comprising a fresh infusion of Rs 904 crore as well as profit retention of Rs 533 crore. This is on top of the Rs 523 crore reinvested in the bank during 2005-06.

The bank’s capital adequacy ratio is 11.06 per cent on March 31 compared with 10.61 per cent in the previous year.

The total income of the bank rose 51 per cent to Rs 4,720 crore from Rs 3,130 crore in 2005-06. Total assets increased 47 per cent to Rs 54,987 crore from Rs 37,473 crore in the previous year.

During the year, the bank increased its deposits by 40 per cent to Rs 34,825 crore, while advances increased 38 per cent to Rs 23,142 crore, the statement added.

BankAm revenues

The Bank of America’s Indian operations has clocked a 24 per cent increase in revenues at Rs 674.4 crore, while profit after tax was up 35 per cent at Rs 195 crore for the year ended March 31.

The rise in revenues is on the back of an increase of Rs 170 crore (43 per cent) achieved during the previous fiscal, a release said. Net interest revenue was up 24 per cent at Rs 249.5 crore in 2006-07 from Rs 200.5 crore in 2005-06 because of improved margins.

Non-interest revenue rose 23 per cent to Rs 244.3 crore from Rs 198.3 crore, driven by enhanced revenues from multiple client services.

These included risk management and hedging services, domestic and offshore capital raising, client-specific structured solutions, foreign exchange management services, higher treasury income and other fee-based activities.

The bank also reported nil net non-performing assets, which is one of the best in the industry and represents the excellent quality of its loan portfolio.

Its asset base increased from Rs 5,965.6 crore in 2005-06 to Rs 6,317.6 crore, while return on assets improved to 3.1 per cent from 2.4 per cent in the previous year.

Bank of America Corporation’s subsidiary — Banc of America Securities India — has also clocked a 3 per cent increase in revenues comprising interest and other income of Rs 22 crore. Net profit grew to Rs 8.7 crore from Rs 7.1 crore in the previous year.

Banc of America Securities is engaged in underwriting, dealing and trading of corporate fixed income securities and related capital market activities.