Q2 Results: HDFC Bank’s Profit Meets Estimates On Stable Loan Growth, Other Income
HDFC Bank’s Q2 profit rises 26 percent to Rs 6,345 crore.
HDFC Bank Ltd.’s second-quarter profit met estimates aided by higher other income and a stable growth in its loan book.
Net profit of India’s most valuable bank rose 26.8 percent year-on-year to Rs 6,345 crore in the quarter ended September, it said in an exchange filing. That compares with the Rs 6,198-crore consensus estimate of analyst tracked by Bloomberg.
The bank’s net interest income, or the core income from operations, rose 15 percent to Rs 13,515 crore, driven by average asset growth of 15 percent. That’s higher than the Rs 13,183.1-crore estimate. The net interest margin fell marginally to 4.2 percent from 4.3 percent in the previous quarter.
Higher other income also contributed to the core income. Non-interest revenue—at 29.3 percent of the net revenues—stood at Rs 5,588.7 crore. That’s 39.2 percent higher than a year earlier, led by higher fees and commissions.
Asset quality remained stable even as the absolute value of bad loans rose 6 percent to Rs 12,508 crore. Gross non-performing assets ratio stood at 1.38 percent compared to 1.4 percent in the previous quarter. Net NPA stood at 0.42 percent compared to 0.43 percent earlier.
Provisions rose 3 percent quarter-on-quarter to Rs 2,700 crore.
Other Highlights
- Capital adequacy ratio stood at 17.5 percent
- Deposits grew 22.6 percent year-on-year
- CASA deposits grew 14.7 percent
- CASA Ratio stands at 39.3 percent of total deposits
- Term deposits grew 28.3 percent
- Advances grew 19.5 percent
- Total balance sheet size as of Sept. 30 stood at Rs 1,325,072 crore as against Rs 1, 169,898 crore a year earlier.
Shares of the company rose 0.74 percent on Friday compared with a 0.65 percent rise in Nifty 50. The stock has returned 15.85 percent gains so far this year against a 7.2 percent gain in Nifty 50 Index and the Nifty Bank Index.
