The 50 reports from 19 analysts offering long term price targets
for HDFC Bank Ltd. have an average target of 1502.31. The consensus estimate
represents a downside of -1.81%
from the last price of 1530.00.
3QFY21 numbers indicate a better-than-expected asset quality outcome 3QFY21 results for banks reassured investors that the asset quality impact of the pandemic has been much lower than what was initially expected. Most banks under our coverage reported restructuring of less than 2% compared to expectation of 5-10% initially. Provisioning in 3QFY21 was 9.3% higher QoQ but given the coverage ratios on the existing stock of NPAs, we believe the overall banking sector is at the tail-end of a high credit cost phase. Banks' credit growth picked up, with loans growing 6.8% YoY in 3QFY21 vs 5.8% YoY in 2QFY21. Sequentially, we saw our coverage banks report loan book growth of 3.3% QoQ (1.3% QoQ in 2QFY21, -2.3% QoQ in 1QFY21), thus pointing to continued recovery momentum. Deposits growth, for the entire coverage banks, was healthy at 11.7% YoY and 2.4%...
Beat on All Counts HDFC Bank (HDFCB)s Q3FY21 performance was a beat on all counts. Core operating performance was steady driven by industry-leading loan growth of 16% and 4% YoY/QoQ.
HDFC Bank reported healthy growth in net earnings (+18.1% YoY, +16.6% QoQ), driven by aboveindustry loan book growth, steady margins and better cost ratios. Overall, the result was ahead of our estimate with 10% beat on the PAT. Advances grew by 15.6% YoY and 4.2% QoQ. Wholesale advances were up 25.5% YoY. While retail asset growth was subdued, the incremental growth trends, especially on the secured portfolio, are highly encouraging. Deposits growth remained strong, up 19.1% YoY and 3.4% QoQ. CASA growth was higher at 29.6% YoY, resulting in better CASA ratios and a favourable funding mix. NII grew by 15.1% YoY and 3.4% QoQ while NIM (reported) was at 4.2%, up 10bps QoQ (flat YoY). Treasury profit was healthy (at >Rs11bn) for the third consecutive quarter, in line with the bank's ALCO strategy to monetise gains. Overall opex growth was slower at 8.6% YoY and 6.5% QoQ....
HDFC Bank has continued to post steady and strong 18% growth in net profit to Rs 8758.29 crore in the quarter ended December 2020 (Q3FY2021), driven by improved margins, healthy and stable loan growth, rise in trading income, double digit growth in core fee income and decline in cost-to-income ratio. The core fee income of the bank has posted sharp recovery on sequential basis for second...
HDFC Bank (HDFCB) reported a strong performance, with advances growth driven by both corporate and revival in the Retail segment. Operating performance remained steady, led by healthy business growth, sequential margin improvement, and cost control. The bank further shored up provisions, providing INR24b toward potential NPAs (not declared due to the SC order) and other contingent provisions. Asset quality remained stable, while total restructuring stood at 0.5% of loans. Proforma slippages stood at INR49b; the bank holds a sufficient...
Price Analysis: HDFC Bank reported a resilient trend on Asset Quality and operating performance in 3QFY21. Just like the previous quarter, the bank used Analytical Model (Pro-forma basis) to declare NPA numbers. The reported GNPA ratio stood at 0.81% (against 1.38% under pro-forma basis and 1.08% in the previous quarter). However, the pro-forma slippages stood 51 bn for the quarter. During the quarter it reported sequentially lower provisioning expenses (34.1 bn v/s 37 bn in 2QFY21). At the same time, core fee and commission income increased 26% sequentially led by sharp uptick in retail loan origination along with higher third-party product distribution income and higher forex income. Thus, the bank reported sequential increase in PAT by 16.6%...
HDFC Bank was incorporated in August 1994. It provides corporate banking and custodial services and is also involved in treasury and capital markets. In addition, it offers project advisory services and capital market products,...
HDFC Bank (HDFCB) has built an exceptional banking franchise, powered by flawless execution. It consistently challenges the status quo as reflected in its product and digital innovation and yet persistently adheres to the basics of banking with regard to underwriting standards. The bank has reported remarkable improvement in collection efficiency, to 97% of pre-COVID levels, and is well-placed to gain incremental market share on both the asset and liability fronts. The bank is seeing improving trends across key business verticals, with some segments like Credit Cards showing strong buoyancy. The Credit Cards segment grew...
HDFC Bank (HDFCB) reported a largely in-line performance in Q2FY21 with PPOP up 18/8% YoY/QoQ to Rs 37,035mn and PAT with similar growth rate of 18/12.8% YoY/QoQ to Rs 75,131mn. Loan book growth (~16%), strong treasury and continued costs controls (C-I at 36.8%) drove the operational performance.
