HDFC Bank reports mixed resultsHDFCBANK - 1559 Change: 30.50 (2.00 %)
News: HDFC Bank reported mixed numbers with strong business growth but slight niggle in asset quality. The net interest income (NII) grew by 14.5% YoY to Rs19,481.4 crore on the bank of stable NIMs at 4.0% and healthy credit off take. Other income declined due to around Rs1311 crore treasury loss. Credit cost for the quarter stood at 0.91% versus 0.95% QoQ and thus bank reported 19% YoY rise in its net profit at Rs9,196 crore. Loan growth came in 21.6% YoY and was fueled by CRB and Retail banking business. Asset quality slightly weakened as agri loans slipped due to seasonality and one-off loan. GNPA for the quarter increased by 11 bps QoQ to 1.28%.
Views: Overall we believe HDFC Bank’s performance on growth front has been good and future outlook also is positive with building up of capabilities, but merger related uncertainty could keep stock in a range.