Private sector lender HDFC Bank today beat analyst estimates and reported a 31 percent rise in net profit at Rs 1,417 crore for the first quarter of financial year 2013 against Rs 1085 crore in the year-ago period, driven by a robust net interest income. A CNBC-TV18 poll had estimated a 30 percent rise in profit after tax at Rs 1411 crore.
The stock is trading 1.61 percent higher at Rs 583.65 post the announcement, while the BSE Sensex is down 17 points at 17214.
Analysts on average expected very strong growth from the bank for not only the quarter but also the full year.
The bank's net revenue, which includes net interest income and other income, grew to Rs 5013 crore, up 26 percent on a year-on year basis. The net interest income beat analyst expectations and grew 22 percent to Rs 3,484 crore, driven by 21.5 percent loan growth.
Net interest margin for the quarter was 4.3 percent.
Other income for the quarter, which is non-interest revenue was Rs 1,529.5 crore, a rise of 36.6 percent from the year-ago period.
The bank's gross non performing assets stood at 1 percent and the net NPA was flat at 0.2 percent . The NPA coverage ratio, excluding technical and other writeoffs, was 81 percent and bank restructured 0.3 percent of gross advances.
HDFC Bank's loan book expansion was higher than industry in the fourth quarter of financial year 2012 and has always maintained above industry growth around 22 percent to 27 percent in the past.
CASA ( Current and savings account) ratio grew to 46 percent of total deposits as the bank added significant number of branches last year.
Savings deposits grew 18.4 percent to 76674 crore and current deposits grew 7.4 percent to Rs 41,682 crore.
In the previous quarter, CASA had improved to 48.4% versus 47.7% due to a 16% growth in savings accounts.
"The mix of loans between the retail and wholesale segments was 52: 48 as on 30 June, as against 54:46 as on 31 March 2012."
The bank sees its loan book growing more than 17 percent expected for the domestic banking sector in the current financial year-ending March 2013.
The RBI cut rates by an unexpected 50 basis points in April, after raising it 13 times between March 2010 and October 2011, to boost the sagging economy.