HDFC Bank Ltd., India’s largest private sector lender, kicked off the earnings season for the nation’s banks with an increase in profit that topped expectations.
(Bloomberg) — HDFC Bank Ltd., India’s largest private sector lender, kicked off the earnings season for the nation’s banks with an increase in profit that topped expectations.
Net income rose to 159.8 billion rupees ($1.91 billion) in the three months ended Sept. 30, according to a statement Monday. That surpassed analyst expectations of 141.2 billion rupees in a Bloomberg survey.
It marks the firm’s first consolidated set of results since merging with mortgage financier Housing Development Finance Corp. in July. Now one of the most valuable banks globally, analysts anticipate a challenging period as it integrates the two firms. Credit growth in slowing for Indian banks amid a weaker mortgage market.
Investors are watching for any further deterioration in the outlook for net interest margins and for a potential pickup in delinquencies. A rise in unsecured loans saw the central bank issue a warning to banks to ensure risk strategies are robust.
Credit growth, which has remained between 12% and 14% in the world’s most populous nation, is expected to remain strong for the next few months as the festive season kicks off in India. Loans at the merged HDFC entity grew by 5% quarter-on-quarter ended Sept. 30, according to an update earlier this month. The bank’s soured loans stood at 1.34% for the quarter ended September.
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