HDFC Bank nears record high on firm Q3 earnings

HDFC Bank nears record high on Q3 earnings; analysts bullish on the stock The stock hit its highest level since August 1, 2018, of Rs 2,165, was trading close to its record high level of Rs 2,219 touched on July 18, 2018, on BSE in the intra-day trade.

MarketS News: Shares of HDFC Bank hit an over five-month high of Rs 2,165, up 1.6 per cent on BSE in the intra-day trade on Monday, after the company reported a 20.3 per cent year-on-year (YoY) growth in net profit at Rs 5,586 crore in December quarter (Q3FY19). The private sector lender had posted a profit of Rs 4,643 crore in the year-ago quarter.

Net interest income (interest earned less interest expended) during the quarter under review grew by 21.9 per cent to Rs 12,577 crore from Rs 10,314 crore in previous year quarter, driven by asset growth of 23.7 per cent and a core net interest margin for the quarter of 4.3 per cent.

The bank’s gross non-performing assets (GNPA) and net NPA ratio increased by 5bp/2bp at 1.4 per cent and 0.4 per cent, respectively. The bank made contingent provisions of Rs 322 crore to insulate itself against any stress in the agri portfolio in view of the impending general elections/recent waivers.

“HDFC Bank saw strong beat on pre-provision operating profit (PPOP) of Rs 10,780 crore up 27.5 per cent YoY on the back of strong other income (fees/treasury/misc income) and slightly better than expected NII (net interest income) growth of...read more →News Source:BS/Business Standard←