Sturdy credit augmentation and steady margins aided HDFC Bank in reaching a 34 per cent plunge in net profit which is at Rs 812 crore for the quarter closing June 30. In the similar period last year, the bank earlier recorded a net profit of Rs 606 crore.
Gross proceeds for the quarter increased by 42 per cent out of which, approximately 10 per cent incline in advances was owing to short-term comprehensive loans to the telecom domain. The augmented loan built-up during the quarter of March was 16 per cent.
According to Mr Paresh Sukthankar, the Executive Director of HDFC Bank the loan stipulation as of now witness strong and the group have generally matured at levels elevated than the system.
With GDP projected to mature at 8.5 per cent, it is likely that system altitude loan development might be somewhere at 21-22 per cent.
Moreover the net interest margin is prone to be steady at about 4-4.3 per cent this year.
Mr. Sukthankar further added that the initial donor to NIM is the deposit mix. If they can uphold a reasonable current account savings account mix and the fraction of retail and wholesale loans stays at 50:50, then the margins might reach to stability levels.
This year, both the yield on advances and cost of payments is expected to move upbeat, which might make sure of stable margins.