India’s second largest private sector lender announced a 20% year on year rise in Net Profit to Rs 4,151 crore in the June-September 2017 quarter, as compared to a net profit of Rs 3,455.3 crore in the previous fiscal. A CNBC TV18 poll had estimated profit at Rs 4,143.5 crore for the quarter ended September 2017. GNPAs remained stable at 1.26%, compared to 1.24% in the previous fiscal and stood at Rs 7,703 crore vs Rs 7,243 crore in the previous quarter. Net interest income during the quarter came in at Rs 9,752.1 crore, a rise of 22%, as against Rs 7,993.6 crore in the previous quarter, beating analyst estimates of a 20.9 percent rise to Rs 9,664.1 crore, according to CNBC TV18 poll.
NIM stood at 4.3% for the latest quarter. Earlier, Motilal Oswal had said, “Cost of funds (COF) decline would help to negate the impact of declining yields environment, and we expect HDFC Bank to report only a marginal 10 bps contraction in margins and report strong NIM of 4.6 per cent. NII is expected to grow at 22 per cent YoY. Other income growth is expected to moderate to 17 per cent YoY, factoring in lower trading gains. Fee income should remain healthy.” HDFC bank shares were trading flat at Rs 1,864 on NSE. Notably the shares have returned more than 49% in the last 9 month period, while the Sensex is up by 22% in the same period.
Other income rose 24.3 per cent YoY to Rs 3,605.90 crore. The bank made Rs 1,476.20 crore worth provisions during the September quarter, which included Rs 1,078.80 crore worth special loan loss provisions and Rs 397.40 crore worth of general and other provisions. Nirmal Bang Institutional Equities had expected the lender to report a 21.7 per cent YoY and 3.8 per cent QoQ growth in NII at Rs 9,728.80 crore and a 24.8 per cent YoY rise in pre-provision profit at Rs 7,519 crore. The brokerage said that the lender will report a profit of Rs 4,139 crore, up 20 per cent.