The stock price has increased by 33.83% in last one year, while the benchmark index S&P BSE Sensex has increased by 41.96%.
The stock price declined after the bank reported lower than expected performance for the quarter ended June (Q1FY22).
The bank’s net profit increased 16.1% to Rs 7,729.6 crore in the first quarter as asset quality deteriorated and provisions increased. In the same period last year, the profit of the country’s largest private-sector lender was Rs 6,659 crore (Q1FY21).
The lender’s net interest income (NII) increased 8.57 percent year on year (YoY) to Rs 17,009 crore in Q1FY21, driven by 14.4 percent growth in advances and a 4.1 percent net interest margin.
During the same time period, the lender’s other income increased by 54.3 percent year on year to Rs 6,228.5 crore. HDFC Bank’s operating performance was moderate due to a drop in net interest margins (NIMs) of 10 basis points (bps) quarter on quarter (QoQ) to 4.1 percent.
At the end of the June quarter, the bank’s asset quality deteriorated slightly. The bank’s gross non-performing assets (NPAs) stood at 1.47 percent, compared to 1.32 percent at the end of the March quarter and 1.36 percent as of June 30, 2020. The bank’s net NPAs were 0.48 percent of its advances portfolio.
HDFC Bank Ltd. is one of India’s leading private banks and was among the first to receive Reserve Bank of India (RBI) approval to establish a private sector bank in 1994. HDFC Bank was founded in August 1994 as HDFC Bank Limited, with its headquarters in Mumbai, India. In January 1995, the bank began operations as a Scheduled Commercial Bank.
HDFC Bank offers a diverse range of banking services, including commercial and investment banking on the wholesale side, as well as transactional / branch banking on the retail side. The bank operates in three major business segments: wholesale banking, treasury services, and retail banking.
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