HDFC Bank

The Bank posted a good set of numbers for Q2FY16, largely meeting all estimates. On a 21% (YoY) rise in NII at Rs.6681 crore, with other income also showing a healthy surge of 25% at Rs.2552 crore, the Bank’s operating profit rose 24% at Rs.5043 crore. This healthy performance cushioned it from the dent which otherwise could have come from the 49% (YoY) rise in provisioning and 22% increase in tax outgo. Thus based on the good revenue growth, the Bank could end Q2 with a 20% jump in net profit at Rs.2869 crore. NIM showed a marginal QoQ decline from 4.2% to 4.3%.

In terms of asset quality, it has amongst the best in the sector with Gross NPA coming at 0.91% v/s 0.95% (QoQ) and Net NPA at 0.25% v/s 0.27%. Total restructured loans stood stable at 0.1% of gross advances (YoY). Its CAR as per Basel III was at 15.5% v/s 15.7% (YoY as well as QoQ). At end of Q2FY16, the Bank had a network of 4227 branches and number of employees stands at 83,416.