HDFC Bank Ltd. share price target

HDFC Bank reported a stable trend on asset quality and decent operating performance in 1QFY22. The absolute GNPA amount increased 13.3% sequentially, which resulted in deterioration in GNPA ratio to 1.47% v/s 1.32% in the previous quarter. The reported GNPA is well above the historical...

HDFCB reported an in line performance, though margin fell by 10bp QoQ on higher interest reversals, unfavorable asset mix, and lower revolving balances on Credit Cards. The bank further shored up its contingent provisions by INR6b to ~INR66b (~0.6% of loans), though this dragged net earnings growth to 16% YoY the lowest in the past many years. Advances growth stood at 14% YoY, led by healthy trends in the Commercial and Rural Banking portfolio, while Retail growth was muted due to a sharp (7% QoQ) decline in the Credit Cards portfolio, which was...

We believe HDFCB remains one of the resilient stocks in the sector. We currently have a BUY on the stock with a target price of Rs 1785/share (SOTP basis core book at 3.6x FY23E and Rs 40 Subsidiary Value).

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 Net Interest Margins (NIMs) of the bank has remained stable and healthy at 4.2% in Q4FY2021 from 4.2% in the previous quarter and 4.3% in the corresponding quarter last year. The bank has exhibited sharp improvement in CASA deposits ratio to 46.1% end March 2021 from 43.0% a quarter ago and 42.2% a year ago. The business growth of the bank has moderated to 15% with deceleration in deposits as well as...

We believe HDFCB remains one of the resilient stocks in the sector and maintain Buy with revised target price of Rs 1785 (SOTP basis core book at 3.6x FY23Eand Rs 40 Subs. Value).

HDFC Bank reported a stable trend on assets quality and healthy operating performance in 4QFY21. The resumption of NPA recognition has resulted in the reported GNPA ratio of 1.32% (against 1.38% under IRAC norms in the previous quarter). The reported GNPA is in line with...

Refer to important disclosures at the end of this report Accelerated provisions suppress PAT in Q4; constant tech outages remain an irritant Despite stable NIMs and higher fees leading to a beat on PPoP, the bank reported slightly lower PAT at Rs81.8bn (up 18% yoy) vs. est. of Rs83bn, mainly due to additional contingent provisions of Rs8bn amid raging second Covid wave and Rs5bn for interest-on-interest waiver. Retail credit growth remained subdued at 8% yoy due to the bank's cautious stance and the RBI's suspension of new card acquisition. Corporate growth remains very strong, leading to...

HDFC Bank's reported stable GNPA at 1.32% vs 1.38% QoQ while NNPA at 0.4% (0.4% QoQ). However, annualized slippages remain at 1.66% vs 1.86% QoQ. Restructuring under RBI resolution framework stood at 57bps of advances; led by personal loans. Post outages issue, RBI asked HDFC bank to stop launches of new digital business and stops issuing new credit cards. Thus, need to watch for RBI clearance as bank had submitted the plan. Advances saw a growth of 14% YoY vs 15.6% YoY in Q3FY21 led by wholesale loans (21.7% growth) and retail loan growth of 6.7% however wholesale and Retail mix stood at 53:47 vs 50:50 (FY20). Deposits saw a growth of 16% led by CASA growth of 27%. Profitability (PBT...

HDFC Bank (HDFCB) reported a healthy quarter, with advances growth driven by both Corporate and continued revival in the Retail segment. Operating performance remained steady, led by robust business growth, stable margins, and controlled opex. However, the bank made additional provisions of INR13b, resulting in a PAT miss. Asset quality remained stable, while total restructuring stood at 0.6% of loans. The GNPA ratio improved 6bp QoQ to 1.32% (v/s a proforma GNPA...