HDFC Bank numbers surprisingly meet the street expectations

HDFC Bank, India’s largest private sector bank by market capitalisation posted fairly positive Q4FY16 numbers.

Bank’s Total Income for Q4FY16 stands at Rs 18862.61 crore as against Rs 18283.31 crore in the last quarter, an increase of 3 per cent. Out of the total income, the Interest Earned came in at Rs 15996.75 crore in this quarter as compared to Rs 15411.12 crore for Q3FY16, an increase of 4 per cent. The Interest Expended too has risen but at a slower pace by 2 per cent at Rs 8543.41 as against Rs 8342.61 crore in the last quarter. Thereby the Net Interest Income (NII) rose 5 per cent at Rs 7453.34 crore.

The Net profit (PAT) for the quarter ended Q4FY16 witnessed a rise of just 1 per cent at Rs 3374.22 crore from Rs 3356.84 crore in the previous quarter. Company’s Gross NPA stands at Rs 4392.83 crore as compared to Rs 4255.2 crore, an increase of 3 per cent. However, in absolute terms Gross NPA was 0.94 per cent i.e. lower than 0.97 per cent in the previous quarter. Net NPA came in at Rs 1320.37 crore as against 1260.6 crore, an increase of 5 per cent.

Year on Year Total Income and Profits jumped 21 per cent and 20 per cent respectively. Interest Earned rose 23% while Interest Expended rose 22 per cent. YoY NII saw a rise of 24 per cent. Gross NPA and Net NPA too showed a substantial rise of 28 per cent and 47 per cent respectively YoY.

For the year ended March 2016, HDFC Bank posted Total Income of Rs 70973.17 crore as against Rs 57466.25 crore for year ended March 2015 i.e. an increase of 23.5 per cent. Similarly Net profit too grew from Rs 10215.92 crore in FY15 to Rs 12296.23 crore in FY16, an increase of 20.4 per cent. Company’s Gross NPA stands at Rs 4392.83 crore as against Rs 3438.38 crore, an increase of 27.8 per cent. Net NPA came in at Rs 1320.37 crore from Rs 896.28 crore for the year ending March 2015, an increase of 47.3 per cent.

HDFC Bank is promoted by the Housing Development Finance Corporation, which holds 15.55 per cent stake in the Bank. The Bank is engaged in providing range of financial services including commercial banking and treasury operations. On the day of result the stock closed on a flat note at Rs 1092.30, an increase of 0.11 per cent.