HDFC Bank second quarter (July-September) net profit rose 20 percent - higher-than-expected - to Rs 1,982 crore but the Net interest income (NII) for the country's second largest private sector lender jumped 20 percent to Rs 4,476 crore in September quarter from Rs 3,732 crore in a year ago period, which was below the analysts' forecast.
CNBC-TV18 poll had estimated net profit at Rs 1,963 crore and net interest income at Rs 4,576 crore for the quarter. What do brokerages have to say? Vaibhav Agrawal, Angel Broking, says although the NII number was a bit of a disappointment for them it was not too negative as such. The increase seen in the non-performing asset (NPA) front is also acceptable considering the current environment feels Agrawal. Therefore, "There is bound to be some amount of disappointment on margins and asset quality but in light of the environment it is not too much to read into," he adds. Similarly, Nitin Kumar, Quant Broking feels given the current environment the Q2 numbers are okay. The Profit after tax (PAT) number was broadly in line with their estimate but the NII was 2-2.5 percent lower than their estimate, says Kumar. Call on the stock? Vaibhav Agarwal maintain a buy on the stock because given the current environment it is still one of the better stocks to hold. "This kind of earnings growth is hard to match in such a largecap," he adds.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
