HDFC Bank Ltd. share price target

NII growth was decent at 12.6% YoY at | 17120 crore, as NIM declined 10 bps YoY due to excess liquidity. Other income was up 26% YoY, 2% QoQ to | 7593 crore on account of a steep rise in forex income and recoveries. C/I declined from 39.0% to 37.2% YoY but QoQ it was up 110 bps. Provisions stayed elevated at | 4693 crore, as bank parked | 1300 crore as contingent provision in Q4FY21. PAT increased 18.2% YoY to | 8186 crore but was slightly below our estimate due to higher provisions. GNPA ratio, on a reported basis jumped from 0.81% to 1.32% as standstill...

HDFCB's earnings of Rs81.8bn saw a 6% miss from our estimates (PLe: Rs86.8bn) on higher contingency provisions of Rs13.0bn (Rs8.0bn for asset quality) and slightly slower NII. Although, PPOP saw a 5% beat led by good other income (treasury/recovery from w.off) and controlled opex growth. Asset quality was steady sequentially, although added Rs8.0bn to COVID contingency provisions (non PCR related) to take it to Rs58.0bn or 60bps of loans. High level financial indicators like cash flow improvements, increase in spends and increased customer additions continue to show robustness....

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,...