HDFC: Q2 operationally in line, one-off gains offset by credit loss

While expected credit loss was due to IL&FS, the company created additional buffer out of exceptional income

Housing Development Finance Corporation's (HDFC) September quarter (Q2) numbers, announced on Thursday, are in line with the Street’s estimates to some extent. 

Net profit grew 24.7 per cent year-on-year (YoY) to Rs 24.7 billion, against a Bloomberg analysts’ poll of Rs 24.3 billion. Even its loan book growth of 17 per cent to Rs 3.8 trillion was within the 17-21 per cent range in the last five quarters, though a tad lower than 18 per cent growth anticipated by analysts. 

Net interest income (NII), too, grew 16 per cent YoY to Rs 26.3 billion. However, a sharp rise in expected