HDFC’s NII grew 17% YoY (marginally ahead of expectations) on back of healthy NIM (4.4%; stable QoQ) and 20.7% loan growth. However, PAT was marginally lower on muted other income largely due to subdued forex as well as trading gains despite moderate rise in opex and lower provisions. Loan book was largely driven by strong growth in overseas as well as domestic wholesale portfolio. Moderate growth in retail portfolio (7% YoY), led to decline in share of retail book from 54% in Q4FY14 to 52% in Q1FY15. Nonetheless, slight disappoint came on rise in NPLs - gross and net NPAs rose 12.3% and 22.9% (QoQ), respectively, in absolute terms. However, it is still comfortable at 1.1% and 0.3%, respectively, in percentage terms.
By Saday Sinha, banking analyst, Kotak Securities
By Saday Sinha, banking analyst, Kotak Securities
