HDFC Bank Net Profit Rises By 21% YoY In Q1FY15

India's second largest private lender, HDFC Bank could not meet street estimates in its first quarter numbers of FY15. Net profit of the bank stood at Rs 2233 crore for Q1FY15 against Rs 1843 crore in the same quarter of previous year registering a growth of 21%. This was lower than the previous run rate that the bank had maintained and the street estimate of 25%. This was on back of lower net interest income (NII) growth and fall in the other income.

NII of the bank grew by 17% on yearly basis to Rs 5171 crore for the quarter ended June 2015. Other income of the bank, which forms 14% of the total income fell by 4% on yearly basis and stood at Rs 1850 crore for Q1FY15. Operating profit of the bank increased by 16% in the same period and stood at Rs 3843 crore for Q1FY15.

The asset quality of the bank has seen deterioration in the quarter. Provisions of the bank has increased by 69% on sequential basis and stood at Rs 482.78 crore. Even gross non-performing assets (NPA) and net NPA of the bank on absolute has increased by 12% and 23% on quarterly basis. 

Gross NPA as percentage of gross advances has increased by 10 basis points on sequential basis to 1.1%. However, net NPA as percentage of net advance has remained constant at 0.3%. 

Post the result announcement shares of HDFC bank fell by 2% from its today's high and closed at Rs 828, which is more than 4 times its book value and looks slightly stretched.