HDFC Bank Ltd. share price target

HDFC Bank's (HDFCB) Q4FY21 PAT was in line at Rs 82bn (+18% YoY) and asset quality was stable with GNPA ratio at ~1.3% despite the SC vacating its stay on NPA recognition.

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 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's Proforma GNPA remained stable at 1.38% vs 1.37% QoQ while NNPA at 0.4%; reported GNPA declined to further 0.81%. However, Proforma Slippages remain at 1.86% vs 2.31% YoY vs 1.98% QoQ. Restructuring under RBI resolution framework stood at 0.5% of advances incl. fewer corporate cases. Bank reported collection efficiency at 97% in December month (earlier 95% Sept month). Profitability (PBT growth) saw an uptick led by lower provision; PAT remain stable at 18%. NII grew by 15% YoY against a loan growth of 16% YoY. PPoP grew by 17% YoY as cost to income ratio improved (36% vs 38% YoY); fee income grew by 10% YoY vs -3% (Q2FY21). As overall economy continues to improve, we...

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's (HDFCB) Q3FY21 PAT of Rs 88bn (+18% YoY) was led by strong 17% growth in operating profit.

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...