HDFC Bank Ltd. share price target

HDFCB reported an in line quarter, with NII/PPOP growth of 13%/10.5% YoY. PAT grew 18% YoY to INR103.4b (in line). Profitability stood stronger despite the bank creating additional provisions of INR9b, taking the total buffer to ~INR86.4b (~70bp of loans). The bank witnessed a healthy pickup in business as loans grew 5.2% QoQ. The Retail segment grew 13.3% YoY, while Commercial and Rural Banking...

....Digital Initiatives & Partnerships to fuel growth While the regulatory changes by RBI is aimed at mitigating systemic risks and facilitating innovation on the digital front, HDFC Bank aims to be at the forefront with a slew of digital initiatives aimed at delivering industry beating growth through market share gains. The focus on new-age technologies like IOT, Cloud & Artificial Intelligence is to enhance credit risk assessment...

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,...

The core fee income of the bank has jumped 26% yoy and 27% qoq in Q2FY2022 recovering from the impact of second covid wave in Q1FY2022. The Net Interest Margins (NIMs) of the bank was flat at 4.1% in Q2FY2022 on sequential as well as over a year ago level. The bank has exhibited healthy improvement in the CASA deposits...

HDFC Bank reported a strong trend on assets quality and operating performance in 2QFY22. The absolute GNPA amount decreased 4.4% sequentially, which resulted in improvement in GNPA ratio to 1.35% v/s 1.47% in the previous quarter. The reported GNPA is well below the...

HDFCB remains one of the resilient stocks in the sector and we maintain a BUY on the stock with a revised target price of Rs 1,935/share (SOTP basis core book at 3.9x FY23E and Rs 70 Subsidiary Value).

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Credit as well as deposit growth improved: HDFCB reported improvement in credit growth to 15% YoY vs 14.4% YoY. Domestic Corporate book slow down to 6% (10% in Q1FY22) and retail book improves to 13% vs 9% YoY (Q1FY22). Deposits growth improved to 14% YoY (4% QOQ) vs 13% YoY in Q1FY22; CASA deposits grew by 28% resulted CASA ratio at 46.8% vs 45.5% YoY. Asset quality improved; restructuring at 152bps: Bank Asset quality improved with GNPA at 1.35% vs 1.47% YoY (1.32% QoQ); NNPA at 0.4% vs 0.48% YoY. Credit cost comes in at 1.3% vs 1.7% QoQ (1.8% YoY). Bank annualized slippages stood at 1.8% vs...

HDFCB reported an inline quarter with NII/PPoP growth of 12%/14% YoY and PAT growth of 18% YoY to INR88.3b (inline). Profitability came in strong despite creating an additional contingent provision of INR12b, thus taking the total buffer to ~INR78b (~0.65% of loans). The bank witnessed a healthy pickup in business momentum as deposits / loans were up 4.5% QoQ each. Retail segment grew ~13% YoY while Commercial and Rural Banking grew robustly at 27.6% YoY. CASA deposits grew 29% YoY and the ratio now stands at 46.8% (+130bp QoQ)....