HDFC Bank: Is the bad loan spell catching up?

Gross NPAs rose for six straight quarters, and were higher by 52% year-on-year in Q2 to Rs 7,703 cr

The June quarter was passed off as an aberration for HDFC Bank's asset quality. However, it appears that the spell on its asset quality may not vanish as in a rush. Gross non-performing assets (NPA), which have been on the rise lately, increased even in September quarter (Q2), making it six straight quarters of rising in bad loans. Gross NPA was seen higher by 52 per cent year-on-year in Q2 to Rs 7,703 crore. Consequently, gross NPA ratio too rose from 1.04 per cent a year-ago to 1.26 per cent in Q2, though net NPA ratio was kept in check