HDFC Bank falls on Q3

A 35% (YoY) jump in other income, a 20% rise in pre-provisioning operating income and a lower tax cost led to the Bank post a 33% increase in net profit at Rs.7416 crore. NII was up 13% at Rs.14173 crore with NIM stable at 4.12.

Its CASA deposits in Q3 grew by 21.5% and time deposits increased by 28% (YoY). The continued focus on deposits helped in the maintenance of a healthy liquidity coverage ratio at 140%, well above the regulatory requirement.

But the asset quality was not as healthy. Gross NPA rose marginally by 4bps to 1.42% while Net NPA rose 6 bps to 0.48% (QoQ).

Its provisions and contingencies for the quarter rose 13% (QoQ) at Rs.3043 crore. In the July-September quarter, the bank had set aside Rs.2701 crore in provisions.

The market is not happy but not overtly perturbed with these numbers. The stock actually opened higher at Rs.1302.75, rising to Rs.1303.80, very close to its 52-week high of Rs.1304.10 but from there it fell to Rs.1254.15, the levels where it is currently quoting.