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HDFC Bank in its December 2015 quarter numbers once again proved why it’s the most valued banking stock in the market. The bank has maintained steady growth on almost all parameters though there are some signs of stress visible in its assets.

Following are the five key takeaways from its December 2015 results:

1. Despite a low overall credit growth in the country, HDFC Bank has posted a 25.7% growth in advances at Rs 4.36 lakh crore. Retail loans, which is HDFC Bank’s strength, grew by 30.4% while wholesale loan increased by 20.7% as per Basel II classification, well above the industry growth rate which is near the lower two-figure mark. Retail accounts for 53% of the bank’s loan book, while wholesale is 47%. Deposits continued to remain strong with 26.5% while lower cost CASA (current account saving account) deposits grew at a faster pace of 29.7%. During the quarter, the bank reduced interest rates for its borrowers but still managed to post a net interest margin of 4.3% as compared to 4.4% last year.

2. Sharp jump was witnessed in the treasury division’s contribution to the bank’s profit. The treasury division posted a profit before tax of Rs 513.24 crore as compared to Rs 266.41 crore in December 2014 and Rs 270.92 crore in September 2014.

3. Though retail division accounts for a higher portion of the loan book, its contribution to profit is lower on account higher costs associated with it. Wholesale loans account for only 23% of HDFC Bank’s revenue, but their contribution to profit before tax is 42.8%. Retail division accounts for 49.12% of the gross revenue but only 38.31% of profit before tax.

4. A cause for some concern is the jump in gross and net non-performing asset (NPA) over the previous quarter. Gross NPA during the December 2015 quarter stood at 0.97% as compared to 0.99% last year, but higher than 0.91% in the previous quarter. In rupee terms, the gross NPA increased by Rs 42,743 crore over September 2015 quarter and Rs 76,791 crore over December 2014 quarter. Net NPA on the other hand increased by Rs 22,292 crore in the December quarter as compared to the previous quarter and Rs 35,674 crore over last year. As a percentage of its total asset, net NPA for December 2015 was only 0.29% against 0.26% in September 2015 and 0.25% in December 2014. Despite the small rise both the Gross and Net NPA levels are the best in the industry. Further, restructured loans were at only 0.1% of the gross advances.

5. HDFC Bank says there has been a negligible impact of RBI’s asset quality review. Few other banks in India can boast of such a statement. Though there has been an increased in provision in one of the accounts, HDFC Bank has largely come out clean in the recent banking sector asset quality issues. Industry experts say one of the reasons that HDFC Bank has been able to maintain a strong loan book is because it is quick to identify problem accounts and deals with them either by selling the account to other lenders or working with the management.