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HDFC Bank drops as NIM remains stagnant in Q1

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Capital Market
Last Updated : Jul 17 2013 | 4:35 PM IST

HDFC Bank lost 2.16% to Rs 664 at 15:10 IST on BSE as the bank's net interest margin remained unchanged at 4.6% in Q1 June 2013, same as in Q4 March 2013 and Q1 June 2012.

The private sector bank announced the first quarter results during market hours today, 17 July 2013.

Meanwhile, the S&P BSE Sensex was up 96.02 points or 0.48% at 19,947.25.

On BSE, 3.18 lakh shares were traded in the counter as against average daily volume of 1.55 lakh shares in the past one quarter.

The stock hit a high of Rs 683.80 and a low of Rs 647 so far during the day. The stock had hit a record high of Rs 727 on 30 May 2013. The stock had hit a 52-week low of Rs 563 on 26 July 2012.

The stock had underperformed the market over the past one month till 16 July 2013, rising 2.01% compared with the Sensex's 3.51% gain. The scrip had also underperformed the market in past one quarter, rising 2.35% as against Sensex's 5.9% rally.

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The large-cap private sector bank has equity capital of Rs 477.75 crore. Face value per share is Rs 2.

HDFC Bank's net profit rose 30.08% to Rs 1843.86 crore on 17.94% growth in total income to Rs 11588.56 crore in Q1 June 2013 over Q1 June 2012. The profit before tax (PBT) rose 32.7% to Rs 2779 crore in Q1 June 2013 over Q1 June 2012.

Net interest income (NII) rose 21% to Rs 4418.70 crore in Q1 June 2013 over Q1 June 2012.

HDFC Bank's ratio of net non-performing assets (NPAs) to net advances increased to 0.3% as on 30 June 2013, from 0.2% as on 31 March 2013 and 0.2% as on 30 June 2012. The ratio of gross NPAs to gross advances remained at the same level at 1% as on 30 June 2013 from the levels as on 31 March 2013 and as on 30 June 2012. Total restructured loans (including applications received and under process for restructuring) were at 0.2% of gross advances as of 30 June 2013, as against 0.3% as of 30 June 2012. Total floating provisions stood at Rs 1865 crore as on 30 June 2013, as against Rs 1680 crore as on 30 June 2012.

The bank's provisions and contingencies declined 9.36% to Rs 527.12 crore in Q1 June 2013 over Q1 June 2012.

HDFC Bank's capital adequacy ratio (CAR) as per Basel III norms stood at 15.5% as against a regulatory requirement of 9%. Of this, Tier-I CAR was 10.5%. Computed as per Basel II guidelines, total CAR was 16% and Tier I CAR was 10.6%.

The cost-to-income ratio for the quarter was 47.9%, as against 49.5% in Q1 June 2012.

Advances as of 30 June 2013 were Rs 258589 crore, an increase of 21.2% over 30 June 2012. This loan growth was contributed by both segments of the bank loan portfolio, with retail loans growing by 25.5% and wholesale loans by 16.5% resulting in a retail:wholesale loan mix of 54:46.

Total deposits as of 30 June 2013 were Rs 303315 crore, an increase of 17.8% over 30 June 2012. CASA ratio as at 30 June 2013 was at 44.7%.

As of 30 June 2013, HDFC Bank's distribution network stood at 3,119 branches and 11,088 ATMs in 1,891 cities/towns.

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First Published: Jul 17 2013 | 3:12 PM IST

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