19 April 2020 HDFC Bank (HDFCB) reported healthy business growth in 4QFY20, led by continued strength in its corporate portfolio while retail growth was soft. Operating performance stood flat as margin expansion was offset by lower fee income due to the COVID-19 impact. Further, the bank has made contingent provisions of INR15.5b, which affected earnings. HDFCB reported a steady quarter with PAT growth of ~18% YoY (-7% QoQ), supported by NII growth of 16% YoY (7% QoQ) as margins increased 10bp QoQ to 4.3%. However, provisions spiked to INR37.8b (+24% QoQ) as the bank made contingent provision of INR15.5b toward COVID-19. NII/ PPoP/PAT grew 16%/23%/25% YoY to INR562b/INR487b/INR263b. Core fee income growth moderated to ~15% YoY to INR42b affected by the lockdown, which resulted in loss of fees/other income of INR4.5b. Opex grew ~16% YoY led by employee expenses (+20% YoY). C/I ratio increased to 39% (+110bp QoQ) while PPoP stood flat QoQ at INR129.