HDFC Bank Q1 Results: Profit, NII miss expectations; Gross, Net NPA rise sequentially

HDFC Bank's asset quality saw marginal pressure during the June quarter with both Gross and Net NPA seeing a minor increase both in percentage and absolute terms on a sequential basis. Most of the other parameters were also slightly below expectations, while provisions have risen from the March quarter.

In its quarterly results reported on Saturday, July 18, HDFC Bank's Gross NPA stood at 1.17% compared to 1.15% in the previous quarter, while Net NPA stood at 0.41% from 0.38% in the January-March period.

Gross NPA in absolute terms stood at ₹35,846 crore during the June quarter versus ₹34,061 crore in March, while Net NPA stood at ₹12,357 crore from ₹11,169 crore last quarter.

India's largest private lender reported net interest income (NII) of ₹33,534 crore during the June quarter, a growth of 6.7% compared to last year's figure of ₹31,438 crore. A CNBC-TV18 poll had projected the figure to be ₹34,353 crore.

Net profit for the period also stood at ₹19,059 crore, lower than the CNBC-TV18 poll of ₹19,332 crore. HDFC Bank's profit grew by 5% during the quarter.

Provisions for the quarter stood at ₹3,059 crore from ₹2,609 crore in the previous quarter.

HDFC Bank's loan growth had grown at the strongest pace in five quarters, the lender had disclosed in its business update earlier this month. Gross Advances were up 15.4% from last year to ₹30.61 lakh crore, while Deposits had grown by 14.7% year-on-year to ₹31.7 lakh crore.

On a sequential basis, HDFC Bank's advances and deposits had grown by 3.4% and 2.1% respectively.

Shares of HDFC Bank ended 1.5% higher on Friday at ₹820.8. The stock has been recovering from its 52-week low after it reported its business update and also appointed a new Chairman in Rajiv Kumar.

Despite the recent recovery, shares of HDFC Bank are still down 17% so far for the year.