HDFC Bank's Q1 net rises 18% to Rs 46 billion but misses estimates

Miss on account of mark-to-market loss in investment book; analysts cautious on asset quality trend

Private lender HDFC Bank on Saturday reported an 18.2 per cent year-on-year increase in net profit to Rs 46.01 billion for the June 2018 quarter (Q1), missing estimates of Rs 47.41 billion (as per a Bloomberg poll of analysts). The sub-20 per cent profit growth comes after a gap of four quarters.
 

Mark to market (MTM) loss of Rs 3.91 billion was the key reason for the profit being lower than street estimates. “The MTM loss was primarily attributable to the corporate bond portfolio,” said the bank in a statement. The pain would have been lower had the bank chosen