HDFC Bank, India's largest private lender, fell off its day's high after its earnings reported a rise in quarterly provisions even as both profit and Net Interest Income came within analysts expectations.
HDFC Bank said its first quarter Net Non Performing Assets rose to 1,028 crore rupees versus 896 crore rupees in the previous quarter, a rise of 14.7 percent. The bank's Gross Non Performing Assets grew 6.2 percent during April-June to 3,652 crores compared with 3,438 crore rupees in the January-March quarter.
HDFC Bank has one of the most stringent guidelines when it comes to corporate lending and a rise in doubtful assets points to an overall sharp deterioration in the industry-wide picture.
As a consequence, HDFC Bank slipped to 1,112 rupees, down 0.3 percent, after hitting a high of 1,128 rupees on the
Overall, the performance was in line with expectations. HDFC Bank's quarterly PAT rose to 2,696 crore rupees versus a forecast of 2,699 crore rupees. Net Interest Income during April-June was at `6,389 crores versus an estimate of `6,254 crore rupees.
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