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HDFC's good Q2 profit nos won't impact stock price: Angel
HDFC announced its second quarter FY12 results. Vaibhav Agarwal, banking analyst at Angel Broking mentioned that the HDFC numbers were in line on the operating front in terms of the loan growth as well as the spreads and overall operating income growth.
India's largest mortgage lender Housing Development Finance Corporation 's (HDFC) announced its second quarter FY12 results. The company's net profit rose 20% year-on-year (YoY) to Rs 971 crore in the September quarter and total income shot up 37% to Rs 4,077 crore from Rs 2,970 crore year-on-year.
Vaibhav Agarwal, banking analyst at Angel Broking mentioned that the HDFC numbers were in line on the operating front in terms of the loan growth as well as the spreads and overall operating income growth.
According to Agarwal, the profits have come in a little higher about 2-3% than expected because they had sufficient provisions made in their balance sheet for the regulatory requirements. "The bottomline came in a bit higher than expected" he clarified. He also pointed out that it would not have a major impact on the stock price.
Usually, asset quality is never an issue with the HDFC. In the last few quarters, the private sector banks have seen a substantial improvement in their asset quality. HDFC Bank has had no incremental NPAs. The managements also indicated that there would be an increase in NPAs going forward as they are now at trough levels. Agarwal explained that the private sector banks would have an increase in NPAs in this quarter as well as the coming quarters.
