HDFC Bank's Q1FY17 standalone net profit rises 20% yoy to Rs.3,238 crore: Estimates Mixed

India Infoline News Service | Mumbai | July 21, 2016 12:14 IST

The bank’s standalone NII stood at Rs. 7,781.44 crore, up 21.8% yoy and 4.4% qoq.

HDFC Bank, fifth largest bank in India, reported standalone net profit of Rs.3,238.91 crore for the quarter ended June 30, 2017, registering growth of 20.15% yoy, but decline of 4.01% qoq. It's Net Interest Income (NII) for the quarter stood at Rs. 7,781.44 crore, clocking growth of 21.8% yoy and 4.4% qoq.

Gross non-performing assets (GNPA) for the quarter stood at 1.04% up 9 bps yoy and 10 bps qoq. Provisions at Rs.866.73crore were higher 19.06% yoy and 30.84% qoq.

For the year ended June 30, 2017, the bank reported net profit of Rs. 15,398.92 crore, registering growth of 50.73% yoy. Provisions during the period at Rs. 2,929.89 crore were higher by 41.15% yoy.

HDFC Bank’s Q1FY17 earnings: Mixed Bag!

HDFC Bank’s Q1FY17 earnings were a mixed bag. The bank’s top line though was more or less in line with IIFL estimate of Rs. 7674.20 crore for the quarter, the bottom line missed IIFL estimate of Rs. 3385 crore for the quarter ended June 30, 2016 by quite a margin of 4%, impacted by higher provisioning of 30.84% to Rs. 866.73 crore in the quarter from Rs.662.45 crore a quarter ago. On yoy basis, provisions jumped 19.06% from Rs.727.99 crore. Meanwhile, asset quality as deteriorated as gross NPAs stood at 1.04% at the end of the June quarter as compared to 0.94% in the previous quarter and 0.95% in the year ago quarter. Seasonal factors as well as stickiness in business banking segment drove NPL level higher. The bank utilized floating provisions amounting to Rs. 1.2 billion against loans given to Punjab State Government and mid-size corporate loan that turned NPL during the quarter. But for this, net profit growth would have been lower.

Result Highlights: (Rs. in crore)
Reported Results IIFL Estimates Variance (%)
Standalone Revenue 7781.44 7674.2 1.40
Standalone Net Profit 3238.91 3385 [4.32]

Standalone EPS for the quarter stood at Rs. 12.8.

Stock Commentary:

HDFC Bank Ltd is currently trading at Rs. 1228.15, down by Rs. 3.95 or 0.32% from its previous closing of Rs. 1232.1 on the BSE.

The scrip opened at Rs. 1231.9 and has touched a high and low of Rs. 1239.5 and Rs. 1226 respectively. So far 853084(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 312343.76 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 1238.5 on 18-Jul-2016 and a 52 week low of Rs. 928.8 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs. 1238.5 and Rs. 1192.5 respectively.

The promoters holding in the company stood at 21.43 % while Institutions and Non-Institutions held 43.51 % and 16.4 % respectively.

The stock is currently trading above its 50 DMA.

***Note: This is a NSE Chart



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