HDFC Bank Q1 net up 21 percent, lags estimates

Bank's NII stands at Rs 5,171 cr, up 17% year-on-year

HDFC Bank Ltd, India's second-biggest private sector lender by assets, reported on Monday a 21 percent rise in quarterly profit, lagging estimates, although asset quality remained stable.

The Mumbai-based bank said net profit rose to Rs 2233 cr  for its fiscal first quarter to end-June from Rs 1844 cr  a year earlier. Analysts had on average forecast a net profit of Rs 2321 cr, according to Thomson Reuters data.

Weaker economic expansion has squeezed credit growth for Indian lenders, slowing their earnings growth in recent quarters. The sector is betting on a revival in economic activity after the new government led by Prime Minister Narendra Modi took power in May.