HDFC Bank Ltd. share price target

HDFCB reported a strong PAT of Rs66.6bn (PLe: Rs64.2bn) amidst COVID-19 lockdown uncertainty, which also prompted it to make additional Rs10bn as provisions leading to a Rs55.0bn of contingency+floating provisions cover. Operating performance was better with PPOP growth of 15% YoY despite losing momentum on core fee income streams to the tune of Rs20bn which was offset by 24% QoQ lower other opex. Bank will continue to build in higher provisioning ahead but prudent risk management gives us comfort on asset quality impact but we have yet to watch outcomes in 2HFY21 as moratorium...

HDFC Bank's (HDFCB) Q1FY21 PAT at ~Rs 67bn was driven by 18% YoY growth in NII and a decline in operating expenses.

For Q1FY21, HDFC Bank's operational performance was largely in line with expectations, but asset quality deteriorated slightly q-o-q, as agriculture loans turned a pain point. Nevertheless, management commentary was positive and reassuring and indicated a bright long-term outlook. For Q1FY21, the net interest income (NII) stood at Rs. 15,665 crores, up 17.8% y-o-y (in line with expectations), while PAT stood at Rs. 6,658 crore, up 19.6% y-o-y (in line) with net interest margins (NIMs) at 4.3%, stable sequentially and within the guidance range. Other income at Rs 4,075.3 crore, amounted to 20.6% of net revenues, helped by treasury gains...

Though GNPA ratio improved YoY in FY20, write-offs were sharply higher during the year, at 74% of opening GNPAs against 53% average over the past three years. The bank has written off part of its agri NPAs, resulting in some moderation in NPA levels in the segment. Nonetheless, the bank holds floating provisions of Rs14.5bn in its balance sheet as of March-2020. This, along with COVID-related contingency provisions of Rs15.5bn made in 4QFY20 should aid incremental credit costs, limiting the deterioration in...

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. Due to huge fall in markets , we are revising our price target given in result...

We are initiating coverage on HDFC bank (HDFCB) with a Buy rating and Price Target of Rs 1,233 (SOTP basis) which implies an upside of 26% from the current levels. Our key reasons being 1) Amongst the best liability franchise/asset book which will help in consistent market share gains.

HDFC Bank reported strong set of numbers on all parameters despite Covid-19 induced lockdown in late March. It grew its profit by 17.72% led by strong loan growth of 21% YoY, low cost of funds and lower tax rate. It saw a deposit growth of 24% YoY with CASA ratio at 42% a jump of 270 bps as compared to last quarter. Margins expanded sequentially as well as YoY to 4.3% despite having higher liquidity coverage ratio at 132%. Asset quality saw improvement with GNPA falling 16 bps sequentially to 1.26%...

HDFC Bank' profitability impacted by contingent provisions (Rs.15.5bn) related to Covid-19 impact. However, asset quality remains stable (GNPA 1.36% vs 1.42% QoQ) if adjusted for moratorium benefits which is the key positive which needs to be watch out for. PAT grew by 17% YoY due to lower effective tax rate (25% vs 34% YoY) as PBT grew by 3% YoY. NII grew modestly by 16% YoY against a loan growth of 21% YoY due to a decline in its margins. PPoP grew by 20% YoY as cost to income rate improved (39% vs 39.6% YoY); fee income growth slowed to 14% YoY (23% YoY Q3FY20) as bank lost Rs.3.5bn on account of Covid-19. We believe that HDFCB would see amongst the...

The bank reported steady asset quality with sequential fall in GNPA at | 12650 crore & ~16 bps reduction in GNPA ratio to 1.26%. Excluding moratorium provided by RBI, GNPA would have been up 10 bps at 1.36%, still prudent. Till now only low single digit proportion availed moratorium and it can rise. Slippages were | 3150 crore (~0.3% of advances). Growth in advances remained healthy at 21.3% YoY, 6.2% QoQ to | 993703 crore, primarily led by higher traction in corporate segment at 28.7% YoY. Traction in retail segment remained moderate at 14.6% YoY, due to muted...

HDFC Bank Ltd. said borrowing for working capital and capital expenditure was behind the growth in its corporate loan book in the fourth quarter ended March, a period when businesses bore the brunt of the Covid-19 outbreak. HDFC Bank has recorded 18% growth in net profit to Rs 6927.69 crore in the quarter ended March 2020 (Q4 FY2020), driven by healthy growth in interest as well as non-interest income. The bank had also exhibited decline in decline in cost-to-income ratio. The lower effective tax rate also boosted the bottomline of the bank in Q4FY2020. However, the provisions for the bank...