HDFC Bank Q1 net profit up 21% on year; provisions up on quarter

HDFC Bank, the country's second largest private sector lender, today disappointed with lower than expected rise in net profit for the first quarter of the financial year. The bank's provisions witnessed a huge jump sequentially though the figure was down on year.

The bank's net profit came in at Rs 2,233 crore, lower than a CNBC-TV18 poll estimate of Rs 2,345 crore.

In the year ago period, the figure stood at Rs 1,843.86 crore and a quarter ago it was at Rs 2326.52 crore.

The bank's net interest margin remained unchanged at 4.4 percent on quarter. Its net non-performing assets on absolute terms stood at Rs 1007.4 crore compared with Rs 820 crore last quarter. Net NPA ratio, meanwhile, was 0.3 percent, unchanged from a quarter ago.

The bank's provisions during the quarter was Rs 482.8 crore much higher than Rs 286 crore in the previous quarter, and lower than Rs 527 crore a year ago.

Net interest income stood at Rs 5,171 crore, up from Rs 4,419 crore a year ago. The CNBC-TV18 poll had estimated the NII at Rs 5,128 crore.

Analysts told CNBC-TV18 that the bank's overall asset quality continues to be good and it will benefit from a revival in the economy.