Driven by a robust loan growth coupled with lower provisions
HDFC Bank , the second largest private
sector lender, on Friday reported more than 30% year on year jump in its second
quarter (July-September) net profit at Rs 1,560 crore. Net interest income
(NII) or the difference between interests earned and paid out, shot up nearly
27% y-o-y to Rs 3,732 crore.
A poll by CNBC Awaaz expected net profit at 28% while NII at
23%. The results were broadly better-than-expected.
The bank's loan book expanded by 23% y-o-y to Rs 2.32 lakh
crore, much above the 17% credit growth mark as projected by the Reserve Bank
of India for the entire industry in FY13.
When the fear of non-performing assets (NPAs) continues to
loom large for most of the banks, HDFC Bank's substantial loan growth did not
come at the cost of credit quality.
This was evident in its stable NPA ratios. Gross NPA ratio
improved to 0.91% as against 0.97% in April-June quarter and 1% in Q2, FY12.
Net NPA ratio remained unchanged at 0.20%.
With asset quality remaining stable, provisions and
contingencies for the quarter ended September 30, 2012 were Rs 293 as against
Rs 366 crore in Q2, FY12, the bank said in a press release.
The provisions consisted of three components: specific,
general and floating. As a standard practice, the bank maintains a floating
provision every quarter in anticipation of bad loans especially when it manages
to keep NPAs under control. The practice, according to banking analysts, would
help retain the bank's good health.
Its deposit base rose around 19% y-o-y to Rs 2.74 lakh crore
achieving RBI's projection for deposit growth at 16% in 2012-13. Savings
deposits grew nearly 15% to Rs 79,150 crore.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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