HDFC Bank reported good set of numbers with profit growth of 20.1% yoy to Rs 23.81 billion. Advances growth of 21.8% yoy, which led to 23.1% yoy growth in Net Interest Income. As a result, NIM improved to 4.5% as compared to 4.3% in 2QFY2014. Non-interest income grew by just 11% yoy, leading to operating income growth of 19.6% yoy.

Commenting on the result, Vaibhav Agrawal, VP research, banking, Angel Broking, said, ''Operating expenses grew 19.2% yoy, leading to pre-provisioning profit growth of 19.9% yoy. On the asset quality front, the bank reported slight improvement, as its reported Gross NPA ratio was 1.02% in the current quarter as against 1.07% in 1QFY2015 and 1.09% in 2QFY2014. At the CMP, the stock is trading at 3.5x FY2016E ABV. We recommend Accumulate rating on the stock.''

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