HDFC Bank surges nearly 3% post Q2 results

Shares of HDFC Bank climbed as much as 2.78 per cent in the intra-day deals on Monday to Rs 2,020.45 apiece on BSE after the lender reported a  20.6 per cent rise in its net profit at Rs 50.05 billion for the second quarter ended September this fiscal, as the core income grew at a healthy pace.

The bank had registered a net profit of Rs 41.51 billion in the July-September quarter of 2017-18.

The net interest income (interest earned minus interest expended) for the quarter grew by 20.6 per cent to Rs 117.63 billion, driven by average asset growth of 22.9 per cent and a net interest margin of 4.3 per cent, it said.

Lalitabh Shrivastawa, assistant vice president - Research at Sharekhan, said HDFC Bank’s results were in-line with expectations, with much stronger operating parameters seen as compared to recent past. "Strong advances growth but stable asset quality are clear stand outs at present times. HDFC Bank has a cushion of Rs nearly 14.50 billion of floating provision, with healthy capitalization levels and thus we find valuations attractive for HDFC Bank. We currently have a BUY rating on the stock."

The gross non-performing assets (NPAs) of the bank rose slightly to 1.33 per cent of the gross advances as on September 30, 2018 from 1.26 per cent on September 30, 2017.

In value terms, the gross NPAs of the bank stood at Rs 100.97 billion by end of September quarter, compared to Rs 77 billion.

The net NPAs or bad loans, however, fell to 0.40 per cent of the net loans by end of second quarter against 0.43 per cent. The absolute value of net NPAs was at Rs 30.28 billion as against Rs 25.96 billion.

At 11:17 am, the stock was trading at Rs 2,000 apiece on BSE, up 1.74 per cent.