HDFC Bank: As retail growth hits 3-yr low, key financials put to test in Q2

In short, HDFC Bank's Q2 show indicates the effect that loan growth slowdown could have on its financials

Is the glass almost full or a little empty? That’s how one would have to judge the recently published September quarter (Q2) results of HDFC Bank. Net profit (Rs 6,345 crore) growing by 27 per cent year-on-year, despite loan book growing only by 19 per cent year-on-year in Q2 is worth noteworthy. Gross non-performing assets ratio, which have lately been in the rise was contained at 1.4 per cent, near about last quarter’s numbers is also positive.

Yet, the quarter gone by had some party spoilers such as an unfavourable composition of loan growth, net interest income at Rs 13,515