HDFC Bank’s profit has shot past most estimates despite the rise in interest rates and other economic pressures. The bank made a profit in the three months to June thanks to robust demand for loans and a rising fee income. Net profit for the first quarter rose 33.6% to Rs1,085 crore. The bank’s net interest income meanwhile rose 18.6% to Rs2,850 crore. On the other hand, the crucial net interest margin dropped to 4.2% from 4.3% in the same period last year. The fall in margins has been worse than many expectations, and the lender’s gross non-performing loans have increased by about 8%. Not surprisingly, investors didn’t react well to HDFC Bank’s performance. Its shares tumbled 0.7% on the BSE to 510.80.
Indian shares rose on Tuesday, ending a two-day losing streak. Strong global cues and a robust performance from some Indian stocks sent the bourses shooting upwards. The Sensex rose 147 points to 18,654. And Nifty climbed 46 to 5,614.