HDFC Bank Ltd. share price target

LUCRATIVE VALUATIONS ON THE BACK OF CORONAVIRUS CONCERNS

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HDFC Bank is one of India's leading private banks & offers a diverse range of financial products and banking services to customers through a growing branch and ATM network and digital channels such as Netbanking, Phonebanking and MobileBanking. HDFC Bank offers a wide gamut of commercial and transactional banking services to businesses and organizations of all sizes. Bank's services include working capital finance, trade services, transactional services and cash management. Under Treasury services, bank's focus is on three main product areas: foreign exchange and derivatives, local...

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 reported strong profitability numbers, better than market and our estimates. PAT grew by 33% YoY led by higher other income (up 36% YoY). NII grew modestly by 13% YoY against a loan growth of 20% YoY due to a decline in its margins. PPoP grew by 20% YoY as cost to income rate improved to 38%; fee income growth remained strong at 23% YoY. In expectation of seasonal headwinds settling down, we...

Advances growth came in healthy at 19.9% YoY to | 936030 crore. Traction in the retail book remained slower at 14% YoY, primarily led by subdued growth in the auto book while growth in unsecured book (personal and credit cards) was healthy at ~25% YoY. Corporate book grew at a faster rate at 27% YoY, offsetting a moderation in retail book. Deposit growth was healthy at 25% YoY to | 1067433 crore, led by strong growth of ~28% YoY in term deposit. CASA saw higher growth compared to the previous quarter leading to ~20 bps uptick in CASA ratio sequentially to 39.5%....

HDFC Bank has recorded accelerated 33% jump in net profit to Rs 7416.48 crore in the quarter ended December 2019 (Q3 FY2020), driven by strong growth in non-interest income and continuous decline in cost-to-income ratio. The lower effective tax rate also boosted the bottomline of the bank in Q3FY2020. The bank has accelerated business growth crossing the...

HDFC Bank's (HDFCB) Q3FY20 PAT at Rs 74bn (+33% YoY) was ahead of our estimates largely due to strong non-interest income.

18 January 2020 HDFCB reported core PPoP growth of 19% YoY while elevated provisions resulted in PBT growth of 16% YoY. PAT at 33% YoY was aided by lower tax rate. Slippages were elevated though the operating performance remained strong with stable margins, robust fee growth and improving C/I ratio. We fine-tune our estimates factoring in strong other income and higher provisions as the bank has created certain specific provisions. Maintain PAT grew 33% YoY led by treasury income of INR6.8b, NCLT recovery came in at INR2b. Fees were robust even as provisions increased. NII grew 13% YoY to INR141.7b (in-line) with margins stable at 4.2%. Core fee income grew 24% YoY to INR45.3b, driving 19% YoY growth in total revenues. Opex grew ~18% YoY as the bank added 382 branches and ~18k employees over the past year. C/I ratio stood at 37.9% (-90bp QoQ, -61bp QoQ in core-cost income).

The Net Interest Margins (NIMs) bank has eased marginally to 4.2% in Q2FY2020 from 4.3% in Q1FY2020 and 4.3% Q2FY2019. The CASA deposits ratio of the bank was steady on sequential basis at 39.3%, but decline from 42% a year ago. The advances growth of the bank accelerated to 19% end September 2019 from 17% end June 2019, with 15% growth in the retail loan book. The bank has posted robust 39% growth in the...