HDFC Bank slips after Q2 results

HDFC Bank fell 1.84% to Rs 654.90 at 14:43 IST on BSE after net profit rose 27.07% to Rs 1982.32 crore on 17.65% increase in total income to Rs 11937.69 crore in Q2 September 2013 over Q2 September 2012.

The result was announced during trading hours today, 15 October 2013.

Meanwhile, the BSE Sensex was down 54.34 points, or 0.26%, to 20,553.20.

On BSE, 3.05 lakh shares were traded in the counter compared with average volume of 2.86 lakh shares in the past one quarter.

The stock hit a high of Rs 673 and a low of Rs 652.65 so far during the day. The stock hit a record high of Rs 727 on 30 May 2013. The stock hit a 52-week low of Rs 528 on 28 August 2013.

The stock had outperformed the market over the past one month till 14 October 2013, rising 6.04% compared with the Sensex's 4.43% rise. The scrip had, however, underperformed the market in past one quarter, sliding 3.92% as against Sensex's 3.25% rise.

The large-cap company has an equity capital of Rs 478.25 crore. Face value per share is Rs 2.

HDFC Bank's ratio of net non-performing assets to net advances stood at 0.3% as on 30 September 2013, compared with 0.3% as on 30 June 2013 and 0.2% as on 30 September 2012.

The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 1.1% as on 30 September 2013, compared with 1% as on 30 June 2013 and 0.9% as on 30 September 2012.

Provisions and contingencies fell 1.02% to Rs 385.93 crore in Q2 September 2013 over Q2 September 2012.

The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 14.6% as on 30 September 2013, compared with 15.5% as on 30 June 2013.

Net interest income (interest earned less interest expended) in Q2 September 2013 accounted for 71% of net revenues and grew by 15.3% to Rs 4476.50 crore from Rs 3881.90 crore in Q2 September 2012. Net interest margin for the quarter was at 4.3% as against 4.4% in Q2 September 2012.

Other income (non-interest revenue) at Rs 1844.4 crore was 29% of the net revenues in Q2 September 2013 and grew by 25.3% over Rs 1471.8 crore in Q2 September 2012. The four components of other income in Q2 September 2013 were fees & commissions of Rs 1354.40 crore (Rs 1220.30 crore in the corresponding quarter of the previous year), foreign exchange & derivatives revenue of Rs 501.40 crore (Rs 235.90 crore for the corresponding quarter of the previous year), loss on revaluation / sale of investments of Rs 173.30 crore (loss of Rs 105.90 crore in Q2 September 2012) and miscellaneous income including recoveries of Rs 161.90 crore (Rs 121.60 crore for the corresponding quarter of the previous year).

Operating expenses for the quarter were Rs 2934.20 crore, an increase of 9.3% over Rs 2685.40 crore during the corresponding quarter of the previous year. The cost-to-income ratio for the quarter was at 46.4% as against 50.2% in Q2 September 2012. Provisions and contingencies were Rs 385.90 crore (consisting of specific loan loss and general provisions) in Q2 September 2013 as against Rs 389.90 crore in Q2 September 2012. The profit before tax was Rs 3000.70 crore, an increase of 31.7% over Q2 September 2012. Provision for taxation was Rs 1018.40 crore, an increase of 41.8% over Q2 September 2012 primarily due to increase in income tax surcharge from 5% to 10%. After providing for taxation the Bank earned a net profit of Rs 1982.30 crore, an increase of 27.1% over Q2 September 2012.

Advances as of 30 September 2013 were Rs 268617 crore, an increase of 16% over 30 September 2012. This loan growth was contributed by both segments of the bank loan portfolio, with retail loans growing by 16.9% and wholesale loans by 15% resulting in a retail:wholesale loan mix of 53:47. Total deposits as of 30 September 2013 were Rs 313011 crore, an increase of 14.2% over 30 September 2012. Savings account deposits grew 17.9% over the previous year to reach Rs 93,285 crore. The CASA ratio as at 30 September 2013 was 45%.

As at 30 September 2013, the total number of branches (including extension counters) and ATM network stood at 3251 branches and 11177 ATMs respectively.

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