In a virtual statistical coup, India’s opinion leader bank came back with half the NPAs at 1.37% from 2.2% and 8% increase in CASA deposits to 44% i.e INR 0.98 T against a Total deposits of Rs 2.24T or $50 bln in Q2 results published at the fag end of the market today. We were quite taken aback at the sudden recovery of fortunes so long ket in cover by the banks ongoing process of statistical rehashing of provisions and org structure where it lost key accounts in corporate investment banking and key people in insurance and PE segments.
Expected profit of $190 mln was dwarfed by a result though only 18% up yoy of $315 mln almost double the street numbers. Consolidated profitss across the goup endeavurs are a modest $349 mln ( Rs 1395 Crores) allowing HDFC Bank to cock a snook at it in a few quarters as the smallnes sof the number starts hitting the policy makers inside the bank.
The bank also tom toms its high CAR numbers with Tier I ratio up to 14% but credit growth remained sluggish at 5.3% unnoticed by the bank’s stakeholders or investors