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HDFC Bank: Rural Push Helps CASA Growth - Views on News from Equitymaster
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HDFC Bank: Rural Push Helps CASA Growth
Jul 22, 2016

HDFC Bank declared the results for the first quarter of financial year ending March 2017 (1QFY17). The bank has reported 22% YoY and 20% YoY growth in net interest income and net profits respectively in 1QFY17. Here is our analysis of the results.

Performance summary
  • Net interest income grows 21.8% YoY in 1QFY17 on the back of 23% YoY growth in advances.
  • NIMs continue to remain stable at 4.4%.
  • Cost to income ratio remains stable at 45%.
  • Net NPA to advances were flat at 0.3% in 1QFY17 despite higher provisioning, while the gross NPAs rose slightly to 1.04% of advances.
  • Capital adequacy ratio (CAR) comfortable at 15.5%, Tier I CAR at 13.3% at the end of June 2016.

    Rs (m) 1QFY16 1QFY17 Change
    Interest income 140,411 165,160 17.6%
    Interest expense 76,523 87,346 14.1%
    Net Interest Income 63,888 77,814 21.8%
    Net interest margin (%) 4.4% 4.4%
    Other Income 24,619 28,066 14.0%
    Other Expense 40,008 47,689 19.2%
    Provisions and contingencies 7,280 8,667 19.1%
    Profit before tax 48,499 58,192 20.0%
    Tax 14,262 17,136 20.1%
    Profit after tax/ (loss) 26,957 32,389 20.2%
    Net profit margin (%) 19.2% 19.6%
    No. of shares (m)* 2,535.0
    Book value per share (Rs) 301.2
    P/BV (x)* 4.1

    *Book value as on 30th June 2016

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