HDFC Bank's Q2 profit up 4.7%, just short of forecasts; deputy MD to leave

what happened

India's biggest private-sector lender, HDFC Bank, posted second-quarter standalone net profit of 195.10 billion rupees ($2.05 billion), up from 186.41 billion a year earlier, as reported by TradingView. That was marginally under the 195.26 billion rupee average forecast compiled by LSEG.

Treasury income fell to 7.8 billion rupees from 23.9 billion, other income dropped 3.6%, and provisions for bad loans rose 2.1%. Meanwhile loans grew 16.3% and deposits 18.8%, while the gross NPA ratio eased to 1.11% from 1.17%.

Deputy managing director Kaizad Bharucha is set to leave at the end of December. Anup Bagchi, a long-serving ICICI group executive, will run the bank for three years from October 27, becoming its first outside chief executive.

why it matters

Shrinking treasury gains and higher loan-loss provisions suggest that earnings growth rests mainly on lending volume. For Indian bank shares, a small earnings shortfall combined with a leadership handover adds uncertainty, while the roughly 94.96 rupees per dollar rate helps translate the figures.

market impact

HDFC Bank and Indian banks: profit slightly below forecasts and a CEO change add uncertainty for the shares

tags

instruments