HDFC Bank drops as NIM declines in Q3 December 2013

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HDFC Bank lost 1.02% to Rs 667.10 at 14:33 IST on BSE as the bank's net interest margin declined to 4.2% in Q3 December 2013, from 4.3% in Q3 December 2012.

HDFC Bank announced Q3 December 2013 result during trading hours today, 17 January 2014.

Meanwhile, the S&P BSE Sensex was down 145.99 points or 0.69% at 21,119.19.

On BSE, so far 2.67 lakh shares were traded in the counter as against average daily volume of 1.89 lakh shares in the past one quarter.

The stock was volatile. The stock lost as much as 2.18% at the day's low of Rs 659.20 so far during the day. The stock rose as much as 0.66% at the day's high of Rs 678.40 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 528 on 28 August 2013.

The stock had underperformed the market over the past one month till 16 January 2014, declining 1.27% compared with the Sensex's 2.93% rise. The scrip had also underperformed the market in past one quarter, advancing 3.46% as against Sensex's 3.49% gain.

The large-cap bank has equity capital of Rs 478.92 crore. Face value per share is Rs 2.

HDFC Bank's net profit rose 25.1% to Rs 2325.70 crore on 17.8% growth in total income to Rs 12739 crore in Q3 December 2013 over Q3 December 2012.

Net interest income rose 16.4% to Rs 4634.80 crore in Q3 December 2013 over Q3 December 2012. The net interest margin or NIM declined to 4.2% in Q3 December 2013, from 4.3% in Q3 December 2012. HDFC Bank's's non-interest income rose 11.4% to Rs 2148.30 crore in Q3 December 2013 over Q3 December 2012.

With asset quality remaining stable during the quarter, provisions and contingencies declined 4% to Rs 388.80 crore in Q3 December 2013 over Q3 December 2012, HDFC Bank said.

Total deposits rose 22.9% YoY to Rs 349215 crore as on 31 December 2013. Adjusted for foreign currency non-resident (FCNR) deposits raised during the quarter, the total deposits growth rate would have been 15.5% and CASA ratio would be 43.7%, HDFC Bank said.

Advances grew 22.9% YoY to Rs 296742 crore as of 31 December 2013. The domestic loan growth was contributed by both retail and wholesale segments, with retail loans growing by 13.6% and wholesale loans by 22.1%, resulting in a domestic loan mix between retail and wholesale of 54:46. Total advances in overseas branches as of 31 December 2013 were at 8% of the total advances as against 3.8% as of 31 December 2012, HDFC Bank said in a statement.

The bank's Capital Adequacy Ratio (CAR) as at 31 December 2013 as per Basel III guidelines stood at 14.7%, as against a regulatory requirement of 9%. Of this, Tier-I CAR was 9.9%. These CAR ratios are based on net worth numbers which do not take into account the profits for nine months ended 31 December 2013. Had the same been included, the total CAR and Tier-I CAR would have been 16.2% and 11.5% respectively, HDFC Bank said.

Gross non-performing assets (NPAs) were at 1% of gross advances as on 31 December 2013, as against 1.1% as on 30 September 2013 and 1% as on 31 December 2012. Net NPAs were at 0.3% of net advances as on 31 December 2013. Total restructured loans (including applications under process for restructuring) were at 0.2% of gross advances as on 31 December 2013, as against 0.3% as of 31 December 2012.

As of 31 December 2013, HDFC Bank's distribution network was at 3,336 branches and 11,473 ATMs in 2,104 cities/towns.

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