HDFC Bank, one of the leading private sector lenders, on Monday reported growth of 21.11% in net profit for the first quarter of fiscal year 2015.
The bank earned a profit of Rs 22.33 billion for the quarter ended Jun. 30, 2014. Analysts on average had predicted net profit of Rs 23.45 billion. The bank's quarterly income totaled at Rs 130.71 billion, an increase of 12.79% over Rs 115.87 billion in the same period a year ago.
Commenting on the numbers, Saday Sinha, banking analyst, Kotak Securities, said, ''HDFC's NII grew 17% YoY (marginally ahead of expectations) on back of healthy NIM and 20.7% loan growth. However, PAT was marginally lower on muted other income largely due to subdued forex as well as trading gains despite moderate rise in opex and lower provisions. Loan book was largely driven by strong growth in overseas as well as domestic wholesale portfolio. Moderate growth in retail portfolio (7% YoY), led to decline in share of retail book from 54% in Q4FY14 to 52% in Q1FY15. Nonetheless, slight disappoint came on rise in NPLs - gross and net NPAs rose 12.3% and 22.9% (QoQ), respectively, in absolute terms. However, it is still comfortable at 1.1% and 0.3%, respectively, in percentage terms.''
''HDFCB's Q1FY15 PAT at Rs 22.3 billion, 4% below consensus as other income declined b 4%. NII reports strong 17% growth driven by 20% loan growth and stable NIMs. Superior RoA of 1.9% delivered without compromising on provision coverage or asset quality for FY14. However, with upside capped, retain HOLD; retaining TP of Rs 890,'' said Kashyap Jhaveri, research analyst, Emkay Global Financial Services.
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