However, the banks net profit growth has been consistently slowing for the past five quarters; it was 30.1% in the first quarter of FY14.
Net interest income, or the difference between interest earned and interest expended, was R5,511 crore, up 23.11% year-on-year (y-o-y). The banks total income was up 16.3% and stood at R13,894.7 crore; its operating profit grew 19.8% to R4,060.1 crore in the quarter under review; it was R3,386.6 crore in the same period last year.
The banks total advances were R3,27,273 crore, a year-on-year (y-o-y) increase of 21.8% retail advances grew 17.3% and wholesale loans grew 21.8%. The domestic loan mix between retail and wholesale was 53:47 in Q2 FY15.
Speaking on the loan growth of the bank, Paresh Sukthankar, deputy managing director of HDFC Bank, said that on the retail side, the banks disbursements on car loans and personal business loans had picked up.
On the wholesale side, it still remains more of working capital, medium-term loans and some term lending, but certainly not yet in greenfield capex. Realistically, the lending link to the next capex cycle in terms of new greenfield capex requirements will probably take another few quarters more, said Sukthankar.
Asset quality remained stable on a sequential basis and was R3,361.65 crore. Net NPAs fell 9% to R917 crore in Q2 FY15. As a percentage of total loans, gross NPA and net NPA were under control at 1% and 0.3%, respectively. Provisions for the September quarter increased to R455.9 crore, up from R385.9 crore in the same quarter in FY14.
The bank was able to improve its net interest margin (NIM), which stood at 4.5% for the three months ended September 30, as against 4.3% in the same quarter last year. Even on a sequential basis, there was an increase of 10 basis points (bps).
Asked if the bank is evaluating a deposit rate cut, Sukthankar said, We have not yet taken any decision in that regard and I think we have noted the fact that the liquidity in the system has eased a little and the deposit growth at a system level is outpacing loan growth. That is more to do with the fact that loan growth at the industry level had come down sharply.
Total restructured loans were 0.1% of gross advances as of September 30, as against 0.2% in the same quarter last year. The HDFC Bank stock ended at R895.9 on Tuesday, up 0.12% from the previous close on BSE. HDFC Bank reported total deposits of R3,90,682 crore, showing an increase of 24.8% over Q2 FY14. While savings account deposits grew 18.8% over the previous year, current account deposits grew 21.4% over the previous year taking the Casa ratio to 43.2% from 43% in Q1 of the current fiscal.