HDFC Bank Q2 Result Update
About the Company:
HDFC Bank was incorporated in August 1994. HDFC Bank Ltd. is an Indian banking and financial services company headquartered in Mumbai, Maharashtra. It has a base of 104,154 permanent employees as of 30 June 2019. HDFC Bank is India’s largest private sector lender by assets. It is the largest bank in India by market capitalization as of February 2016. It was ranked 60th in 2019 BrandZ Top 100 Most Valuable Global Brands. It provides corporate banking and custodial services and is also involved in treasury and capital markets. In addition, it offers project advisory services and capital market products, including GDR and currency bonds.
QoQ & YoY Performance:
India’s largest private sector bank has declared the results for the second quarter of financial year ending March 2020.
- Net Interest Income: NII (difference between interest earned and interest expended) that serve as a major factor for future prospects landed to Rs 1445844 lakhs slightly up by 1.83% QoQ while on YoY basis there is an increase of 15.41%.
- Net Profits: On QoQ basis, the bank has posted 16.83% net profits that are landed to Rs 664,880 crores after-tax while on a YoY basis, there is a sharp rise of 22.74%.
- Provisions and Contingencies: Bank's provisions and contingencies are rose by 6.07% QoQ and 52.22% in YoY.
- NPA (Gross): Gross NPA% is marginally up by 6.71% QoQ but declined by 10.67% YoY that will grab the attention of the investors.
- NPA (Net): Net NPA ratios are decreased by 1.43% QoQ and 3.76% YoY.
As per Lokesh Sethia, SEBI Registered, the stock was closed at Rs.1229 per share, slightly up by 0.22% in yesterday trading session. The leading private sector lender reported robust net profit jumped by 22.74% on YoY basis. However, the asset quality of the bank improved marginally with a percentage of gross non-performing assets rising to 1.38% against 1.4% on QoQ basis. Hence, we recommend it to “Buy”.