HDFC Bank's Q2 net profit seen up 28%

India’s second largest private sector lender HDFC Bank 's second quarter (July-September) net profit is likely to grow more than 28% year-on-year, suggested a poll estimate by CNBC Awaaz. Net interest income or the difference between interest earned and paid out, would increase by nearly 23% to Rs 3612 crore.

"HDFC Bank has been giving better than expected performance for quite a few quarters," Vaibhav Agrawal, a banking analyst at Angel Broking told moneycontrol.com.

"The bank has so far maintained its asset quality. If there is no actual increase in non-performing assets in Q2 too, the floating provisions for the same would increase. This is good for the health of the bank. Net interest margin may remain same,” he said.

The bank maintains a provisioning buffer or floating provision in anticipation of bad loans.

According to analysts, the bank has been mostly sanctioning short-term loans to different rated corporates only. This perhaps is the key behind maintaining their asset quality. In the recent spate, the bank did not figure in any of the big loan restructuring cases.

The bank's loan book too is expected to expand more than 20-21% y-o-y surpassing the credit growth projection of 17% for FY13, set by the RBI.

In the last one year, HDFC Bank shares rose more than 36% as against a rise of 25% of broader index - BSE Bankex.