HDFC Bank

The second largest private sector bank of India posted a 30% (YoY) net profit at Rs.1560 crore. NII was up 27% at Rs.3,732 crore and other income was at Rs.1,345 crore, up 11 %. Loan growth of 23% helped drive the NII. Retail loans grew 32%  and corporate loan grew 14%. Deposits grew 19%. NIM was up at 4.2%, marginally down from 4.3% on QoQ and up from 4.1% on a YoY. NIM in the current fiscal is expected to be around 3.9 to 4.2%.

Gross NPA rose from 1% to 0.91%  and net NPA was unchanged at 0.2%. Total restructured loans, including applications received and under process, were 0.3% of gross advances. Provision coverage ratio was at 82%. CASA was at was 45.9%. Capital adequacy ratio was at 17%. Interestingly, FII holding in the bank at end of current Q2 stands at 68.72%, which is the highest level in five-and-a-half years and this is despite selling of stake by Citigroup and Carlyle. In 2007, Carlyle had acquired 5.2% stake at Rs.340/share and they one tranche at Rs.677/share and remaining 3.7% at Rs.762/share. Clearly, the PE fund more than doubled its money. Domestic institutional holding was at 18.03% v/s 29.05% on  a YoY.