MUMBAI (Reuters) – HDFC Bank Ltd posted a 18.2 percent arise in first-quarter net distinction though missed analysts’ estimates as a lender chose to embody all mark-to-market waste in a initial quarter, heading to aloft provisions.
Net distinction rose to 46.01 billion rupees ($669.43 million) for a entertain finished Jun 30, from 38.94 billion rupees a year ago, India’s second-biggest lender by resources pronounced in a statement.
Analysts had on normal approaching a net distinction of 47.66 billion rupees for a bank that has a top marketplace capitalisation in a zone during scarcely $85 billion, according to Thomson Reuters data.
Gross bad loans as a commission of sum loans stood during 1.33 percent during end-June, contra 1.3 percent during end-March.
With a clever sell participation and comparatively smaller bearing to sectors such as infrastructure that have led to record levels of bad loans in India’s banking sector, HDFC Bank is a favourite among investors.
Its loans during end-June grew 22 percent from a year earlier.
Private zone banks have stretched loans during a faster gait and have snatched marketplace share from widespread state-backed lenders that comment for a bulk of bad loans in India.
Provisions, or a volume set aside by a bank to cover a destiny liability, for a entertain rose to 16.29 billion rupees from 15.59 billion rupees, final year, with a lender not opting for a executive bank management of swelling bond waste over 4 quarters.
This led to a mark-to-market detriment of 3.91 billion rupees in a quarter, a bank pronounced in a statement.
Net seductiveness income rose 15.4 percent from a year earlier, while net seductiveness domain came in during 4.2 percent.
HDFC Bank’s smaller opposition Kotak Mahindra Bank Ltd missed distinction estimates progressing this week as supplies surged.
($1 = 68.7300 Indian rupees)
Reporting by Promit Mukherjee in Mumbai and Chris Thomas in Bengaluru; Editing by Himani Sarkar and Ros Russell