HDFC Bank Q1 net profit at Rs.3238.9 crore; Gross NPA at 1.04%

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The Board of Directors of HDFC Bank Limited approved the Bank’s (Indian GAAP) results for the quarter ended June 30, 2016, at their meeting held in Mumbai on Thursday, July 21, 2016. The accounts have been subjected to a ‘Limited Review’ by  the statutory auditors of the Bank.

Financial results:
The Bank’s total income for the quarter ended June 30, 2016 was Rs.19,322.6 crores, as against Rs.16,503 crores for the quarter ended June 30, 2015. Net revenues (net interest income plus other income) increased by 19.6% to Rs.10,588.1 crores for the quarter ended June 30, 2016 from Rs.8,850.7 crores in the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for the  quarter ended June 30, 2016 grew by 21.8% to Rs.7,781.4 crores, from Rs.6,388.8 crores for the quarter ended June 30, 2015, driven by average assets growth of 20.2% and a net interest margin for the quarter of 4.4%.

Other income (non-interest revenue) at 2,806.6 crores was 26.5% of the net revenues for the quarter ended June 30, 2016 and grew by 14.0% over 2,461.9 crores in the corresponding quarter ended June 20, 2015. The four components of other income for the quarter ended June 30, 2016 were fees & commissions of Rs.1,977.9 crores (Rs.1,713.0 crores in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of Rs.314.5 crores (Rs.348.0 crores for the corresponding quarter of the previous year), gain on revaluation / sale of investments of 276.9 crores (Rs.125.9 crores in the corresponding quarter of the previous year) and miscellaneous income including recoveries of Rs.237.4 crores (Rs. 275.0 crores for the corresponding quarter of the previous year).

Operating expenses for the quarter ended June 30, 2016 were, Rs.4,768.9 crores, an increase of 19.2% over Rs.4,000.8 crores during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 45.0% as against 45.2% for the corresponding quarter ended June 30, 2015.

Provisions and contingencies for the quarter ended June 30, 2016 were, Rs.866.7 crores (consisting of specific loan loss provisions Rs.832.3 crores and general / floating / other provisions Rs.34.4 crores) as against Rs.728 crores (consisting of specific loan loss provisions Rs.557.5 crores and general / floating / other provisions 170.5 crores) for the corresponding quarter ended June 30, 2015.

After providing Rs.1,713.6 crores for taxation, the Bank earned a net profit of Rs.3,238.9 crores, an increase of 20.2% over the quarter ended June 30, 2015.

Balance Sheet: As of June 30, 2016

Total balance sheet size as of June 30, 2016 was Rs.755,100 crores as against Rs.629,322 crores as of June 30, 2015.

Total deposits as of June 30, 2016 were Rs.573,755 crores, an increase of 18.5% over  June 30, 2015. CASA deposits saw healthy growth with savings account deposits growing by 22.2% over the previous year to reach Rs.152,701 crores and current account deposits growing by 13.7% over the previous year to reach Rs.76,082 crores. Time deposits were at Rs.344,972 crores an increase of 18.0% over the previous year resulting in CASA deposits at 39.9% of total deposits as on June 30, 2016.

Advances as of June 30, 2016 were Rs.470,622  crores, an increase of 23.2% over June  30, 2015. As per regulatory [Basel 2] segment classification, both domestic retail loans and wholesale loans grew by 24.5% (as per internal business classification, the growth was 24.9% and 23.7% respectively). The domestic loan mix between retail:wholesale was 53:47.

Capital Adequacy:
The Bank’s total Capital Adequacy Ratio (CAR) as per Basel Ill guidelines, was  at 15.5%  as  at  June  30,  2016  (15.7%  as  at  June  30,  2015)  as  against  a regulatory requirement of 9%. Tier-I CAR was at 13.3% as on June 30, 2016 compared  to  12.8% as at June 30, 2015.

Asset Quality
Gross non-performing assets (NPAs) were at 1.04% of gross advances as on June 30, 2016, as against 0.95% as on June 30, 2015. Net non-performing assets were at 0.3% of net advances as on June 30, 2016. Total restructured loans were at 0.1% of gross advances as of June 30, 2016.

Stock price:
HDFC Bank Ltd is currently trading at Rs. 1231.45, down by Rs. 0.65 or 0.05% 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. 1223.15 respectively. So far 1053422(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.