HDFC Bank
A 17% (YoY) rise in Net Interest Income (NII) at Rs.5172 crore but on the other hand, non-interest income was down 4% , while provisions jumped up 69% at Rs.483 crore and 21% increase in tax outgo at Rs.1128 crore, brought in a lower-than-expected net profit. The Bank showed a 21% increase in net profit for the quarter at Rs.1844 crore. NIM was status quo at 4.4% (YoY) but QoQ, it has slipped down from 4.6%. The markets is disappointed with the numbers because it had expected, on an average, the net profit to come in at least Rs.100 crore higher and NIM to be around Rs.50 crore.
In terms of asset quality, Gross NPA rose 10 bps to 1.1% and Net NPA was unchanged at 0.3% (QoQ). The bank’s restructured loans was at 0.2% of gross advances as at 30th June, same as in previous Q1. The cost-to-income ratio for the quarter was at 45.3% as against 47.9% (YoY), indicating that the Bank has indeed managed to bring down, its costs as a percentage to revenue earned.
As at 30th June 2014, Advances were at Rs.312,109 crore,a rise of 21% (YoY) while deposists were up 23% at Rs.372,074 crore. The Bank’s total Capital Adequacy Ratio (CAR) as per Basel III guidelines, was at 15.1% v/s 15.5% (YoY) and much above the RBI requirement of 9%.
As of June 30, 2014, the Bank’s distribution network was at 3,488 branches and 11,426 ATMs in 2,231 cities / towns. 55% of its branches are in semi-urban and rural areas.