HDFC Bank - Q3FY13 Results Review First Cut - Microsec

HDFC Bank Ltd has announced its Q3FY13 result on 18th January 2013.

The bank's total income increased by 10.26% QoQ and 23.41% YoY to INR5597.74 crores, driven by robust YoY growth in its Net Interest Income (NII) and Other Income by ~22% and ~27% respectively. Whereas, Profit After Tax (PAT) increased by 19.17% QoQ and 30.04% YoY to INR1859.07 crores. Bank's provisions and contingencies have been increased by 4.90% QoQ and decreased by 6.68% YoY to INR307crores. Decline in provisions contributed ~1.5% YoY growth in its bottom line.

During the quarter, Bank's loans book and total deposits expanded by 24.29% and 22.20% YoY to INR241493.25 and INR284118.57 crores respectively. On the assets quality front, the bank's NNPA remained flat at 0.20% whereas, GNPA has been increased by 9bps QoQ to 1.00%. Moreover, bank is well capitalized to support its growth trajectory, Capital Adequacy Ratio (CAR) improved by 70bps YoY to 17% which is almost double than the regulator's stipulated norm. On the margin front, Net Interest Margin (NIM) declined by 10bps QoQ and remain flat on YoY basis to 4.10%. Moreover, bank is in well position to tame any time liabilities with 80% of its Provision Coverage Ratio (PCR). However, bank's low cost deposits base (CASA ratio) declined by 50bps QoQ and 230bps YoY to 45.40%.

Total restructuring advances (including applications received and under process for restructuring) were at 0.3% of gross advances as of 31st December 2012.

Source : Equity Bulls

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