HDFC Bank Q2 net profit rises 27%

HDFC Bank Q2 net profit rises 27%

HDFC Bank on Tuesday reported a 27 per cent rise in the net profit at Rs 1,982.32 crore in the July-September quarter of the current fiscal as compared with Rs 1,559.98 crore in the same quarter last year.

During the quarter under review, the bank’s total income rose to Rs 11,937.69 crore as compared with Rs 10,146.65 crore for the quarter ended September 30, 2012, it said.

With this, India’s 2nd largest private sector lender broke its own record of posting 30 per cent growth in its net profit for 54 consecutive quarters. The marginal decline was due to lower-than-expected net interest income and margin.

Net interest margin (NIM) of the bank during the quarter fell to 4.3 per cent from 4.4 per cent. This reduction was due to the RBI’s tight liquidity measures taken in July.
During the quarter, net interest income (NII) — difference between interest earned and interest expended — grew 15.3 per cent to Rs 4,476.5 crore from Rs 3,882 crore in the same quarter last year, while non-interest income (or fee-based income) grew  25 per cent to Rs 1,844 crore from Rs 1,472 crore in Q2 FY’13.

Rise in NPAs

Gross non-performing assets (NPAs) increased to 1.1 per cent of total advances against 0.9 per cent in the second quarter last year. Net non-performing assets were up at 0.3 per cent from 0.2 per cent.

Total advances

As on June 30, 2013, total advances grew 16 per cent year-on-year to Rs 2.69 lakh crore. Retail loan segment growth was 17 per cent, while wholesale loans grew 15 per cent resulting in a retail : wholesale loan mix of 53:47.

Total deposits as of September 30, 2013 were at Rs 3.13 crore, an increase of 14 per cent over September 30, 2012. Savings account deposits grew 18 per cent.

During the quarter under review, the bank’s current and savings account (CASA) ratio was at 45 per cent.

The bank’s total capital adequacy ratio as of September 30, 2013 (computed as per Basel III guidelines) stood at 14.6 per cent against a regulatory requirement of 9 per cent.

The bank saw its balance sheet size increase 14.2 per cent to Rs 4,31,166.77 crore at the end of the reporting quarter.

Shares of HDFC bank were trading down after the results were announced and closed the day at Rs 651.40, down 2.37 percent from the previous closing on BSE.

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