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HDFC Bank Jumps Over 5% After Q1 Results

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On Monday, shares of HDFC Bank rose over 5 percent to Rs 1,152.90 after the private lender reported a 19.58 percent in net profit for the June ended quarter supported by a strong increase in net interest income.

HDFC Bank Jumps Over 5% After Q1 Results
 

The bank reported a Q1 net profit of Rs 6,658.62 crore in its financial results released on Saturday, wherein it said that the net interest income, that is the difference between interest earned and interest expended, grew by 17.8 percent in the April-June period to Rs 15,665.4 crore from Rs 13,294.3 crore last year. The increase in interest income was driven by growth in advances of 20.9 percent, and growth in deposits of 24.6 percent. The net interest margin for the quarter was at 4.3 percent.

"The continued slowdown in economic activity has led to a decrease in retail loan origination, sale of third party products, use of credit and debit cards by customers, efficiency in collection efforts and waivers of certain fees. As a result, fees/other income were lower by approximately Rs 2,000 crore," HDFC Bank said in its statement.

Provisions and contingencies for the quarter rose 48.89 percent year-on-year to Rs 3,891.52 crore. "Total provisions for

the current quarter included contingent provisions of approximately Rs 1,000 crore," it said.

Further, the Managing Director, Aditya Puri, said that his potential successor has been with the bank for 25 years, indicating the preference given to internal candidates in the shortlist sent to RBI.

After the quarterly results, brokerage firm Jefferies maintained its buy rating on the stock and raised its price target to Rs 1,350 from the earlier Rs 1,280.

Read more about: hdfc bank
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