HDFC Bank Q2FY12 - Net profit up 31.5%
Srujani Panda / 19 Oct 2011
HDFC Bank has posted healthy Q2 FY12 numbers. Its Net Interest Income has increased by 16.6% to Rs 2944.50 crore, backed by advances which grew by 25.6% to Rs 189917 crore. Its Net Profit was up 31.50% to Rs 1199.3 crore. Today, the scrip closed 3% higher at Rs 491.10.
It is heartening to see that the bank’s asset quality improved even in a rising interest rate environment. The bank’s net NPAs came down by 10 basis points to 0.20%. With good asset quality, the bank reduced its provisions by 19.45% to Rs 366.05 crore.
The bank’s Net Interest Margin decreased 10 basis points to 4.1%. The Capital Adequacy Ratio (CAR) of the bank came down by 150 basis points to 16.5%, but this is still way above the RBI’s minimum requirement of 9%. Its Tier I CAR was at 11.4%, as of September 2011.
The total deposits with the bank increased by 18.1% to Rs 230676 crore on a YoY basis and by 9.2% on a QoQ basis. Gross retail loans grew by 34.2% to Rs 92878 crore, which helped the segment grow strongly. The profits from treasury operations stood at Rs 38.85 crore as against the loss of Rs 51.74 crore for the quarter ended September 2010. Other income includes fees and commission, which increased by 15% to Rs 987.9 crore and income from foreign exchange and derivatives, which grew 43% to Rs 218 crore
Overall, the bank looks in good shape amid high interest rates. With interest rates almost reaching a peak, we expect banks to perform well in the coming quarters, and hence, one can invest in the scrip in a staggered manner.
The following is a comparison of the bank’s key parameters:
It is heartening to see that the bank’s asset quality improved even in a rising interest rate environment. The bank’s net NPAs came down by 10 basis points to 0.20%. With good asset quality, the bank reduced its provisions by 19.45% to Rs 366.05 crore.
The bank’s Net Interest Margin decreased 10 basis points to 4.1%. The Capital Adequacy Ratio (CAR) of the bank came down by 150 basis points to 16.5%, but this is still way above the RBI’s minimum requirement of 9%. Its Tier I CAR was at 11.4%, as of September 2011.
The total deposits with the bank increased by 18.1% to Rs 230676 crore on a YoY basis and by 9.2% on a QoQ basis. Gross retail loans grew by 34.2% to Rs 92878 crore, which helped the segment grow strongly. The profits from treasury operations stood at Rs 38.85 crore as against the loss of Rs 51.74 crore for the quarter ended September 2010. Other income includes fees and commission, which increased by 15% to Rs 987.9 crore and income from foreign exchange and derivatives, which grew 43% to Rs 218 crore
Overall, the bank looks in good shape amid high interest rates. With interest rates almost reaching a peak, we expect banks to perform well in the coming quarters, and hence, one can invest in the scrip in a staggered manner.
The following is a comparison of the bank’s key parameters:
| Particulars (Rs / Cr) | Q2 FY12 | Q2 FY11 |
| Net Profit | 1199.3 | 912 |
| CASA (%) | 47.3 | 50.6 |
| NIM (%) | 4.1 | 4.2 |
| CAR (%) | 16.5 | 17 |
| Provisions | 366.05 | 454.48 |
| Gross NPA (%) | 1 | 1.16 |
| Net NPA (%) | 0.2 | 0.3 |
| Revenue | Profit | |||||
| Segment (Rs/Cr) | Q2 FY12 | Q2 FY11 | % Change | Q2 FY12 | Q2 FY11 | % Change |
| Treasury Operations | 1910.31 | 1177.52 | 62.23 | 38.85 | -51.74 | 175.09 |
| Retail Banking | 6614.61 | 4595.41 | 43.94 | 957.6 | 710.33 | 34.81 |
| Wholesale Banking | 4069.05 | 2850.14 | 42.77 | 670.07 | 619.37 | 8.19 |
| Other Banking operations | 649.79 | 609.95 | 6.53 | 274.06 | 236.76 | |
| Less Inter Segment | 5384.91 | 3462.32 | 55.53 | |||
| Unallocable | 70.53 | -180.83 | -162.1 | 11.55 | ||
| Total | 7929.38 | 5770.7 | 37.41 | 1759.75 | 1352.62 | 30.1 |
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