HDFC Bank’s shares fall 2% even as net profit grows 18% to Rs 4,601 crore

The bank posted an 18.2 percent year-on-year (YoY) increase in its first quarter net profit at Rs 4,601.44 crore missing expectations on the back of lesser than expected growth in interest income.

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Shares of HDFC Bank fell over 2 percent on Monday morning as investors reacted to the fine-print of the June quarter results announced by the lender.

The stock touched an intraday high of Rs 2,160.00 and an intraday low of Rs 2,139.95.

The country’s largest private sector lender (by market capitalization) posted an 18.2 percent year-on-year (YoY) increase in its first quarter net profit at Rs 4,601.44 crore missing expectations on the back of lesser than expected growth in interest income.

The bank had posted standalone net profit of Rs 3,893.84 crore for Q1FY18. A Reuters poll of equity analysts had expected HDFC bank to post a 23 percent increase in its first quarter net profit at Rs 4,785.3 crore.

The net interest income (NII) rose by 15.4 percent YoY to Rs 10,813.57 crore in Q1FY19. Analysts had estimated NII to grow by 20 percent.

Provisions of HDFC Bank for Q1 saw a 4.5 percent increase to Rs 1,629.37 crore compared to Rs 1,558.76 crore in the year-ago period. Of this, loan loss provisions was at Rs 1,432.2 crore in Q1 as against Rs 1,343.2 crore for the year-ago period.

The bank’s saw a marginal increase in the non-performing assets (NPA) rose. Gross NPA ratio rose to 1.33 percent compared to 1.30 percent sequentially and 1.24 percent in the year-ago period.

The stock is trading higher by 5 percent in the past one month, while in the past three days, it has lost around half a percent. At 09:25 hrs HDFC Bank was quoting at Rs 2,164.25, down Rs 25.85, or 1.18 percent, on the BSE.

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