Economy

HDFC Bank shares fall post Q2 results

HDFC Bank shares fall post Q2 results”

India's IDFC Bank reported a 40 percent fall in second-quarter profit on Wednesday.

Net interest income (NII) or the core income a bank earns by giving loans rose 22% to Rs9,752.07 crore versus Rs7,993.59 crore a year ago.

Mumbai, Oct 25 Private sector RBL Bank today reported a 68 per cent rise in its September quarter net at Rs 150.62 crore on a rise in core interest income and a low base.

It can be noted that many sectors, including steel and power, are under stress for the last few years due to a slew of reasons including sluggish economic growth, regulatory actions of the past and also a slump in global markets.

Shares of Punjab National Bank (PNB) skyrocketed 46.20 per cent, Bank of India jumped 33.96 per cent, Bank of Baroda soared 31.47 per cent and State Bank of India zoomed 27.58 per cent on BSE.

Net interest income (interest earned less interest expended) rose 22.0% to Rs 9,752.1 crore, driven by average asset growth of 17.6% and a core net interest margin for the quarter at 4.3%. If you look at the loan growth at around 23 per cent, it is way ahead of the system growth, which has been closer to about 6-6.5 per cent.

"Provisions consisted of specific loan provisions of Rs 1,078.8 crore and general & other provisions of Rs 397.4 crore", the bank said.

In a notification, RBI said Yes Bank violated the Income Recognition Asset Classification (IRAC) norms on dealing with assessment of bad loans as of March-end 2016.

HDFC Bank said total deposits grew by 16.5 percent to Rs 6.89 lakh crore YoY, with both savings account and current account deposits each growing 23.6 per cent over the previous year.

Giving details, Financial Services Secretary Rajiv Kumar said the government has made a decision to take a massive step to capitalise PSBs (public sector banks) in a "front-loaded" manner, with a view to support credit growth and job creation.

The regulator had made certain observations on the implementation of the scheme and the bank has given its submission.



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