HDFC Bank Ltd. share price target

HDFC Bank is the leading private bank with an assets, loans & advances and Market Cap over INR 10.6tn, INR 6.5tn and INR 5.6tn. The distribution network comprises of 4,787 branches and 12,635

Loan growth is healthy at 22%, driven by retail segment. NII and PAT growth of 15% and 18% respectively is almost in line with our expectations. Fee income has grown by 23%. Bank did not avail RBI dispensation and made entire MTM depreciation of Rs3.9bn during the quarter. Core PBT growth (excluding treasury) is 29%. Asset quality has been stable and has been one of the best in the sector. Given all regulatory approvals in place, we have factored equity issuance of Rs240bn. We retain our BUY rating with a TP...

A Mixed Show: The bank reported largely a healthy & stable performance. The loan growth washealthy. Core fee income growth held strong and higher than the advance growth. Cost/Income ratio continued to see downtick. However, CASA growth lagged the advance growth and margins saw sequential down tick.

HDFCB reported a net profit of INR 46.0bn in 1QFY19 (+18.2% YoY), 2.2% below our estimates. Core PPoP growth was strong at +24% YoY. Profit miss was largely led by softer than expected NII growth (+15.4% YoY). The topline moderated as margins contracted 10bps QoQ led by faster growth in term deposits (+25% YoY), lower yields on investments and higher growth in low yielding corporate and home loan segments. HDFCB's bottomline was also impacted by MTM provisions on the AFS investment book (INR 3.9bn, 4.4% of core PPoP), which was fully recognised in the quarter. Slippage was slightly elevated for the quarter at INR 35.5 bn (2.1% annualised), primarily due to pressure on the agri loan book...

We attended HDFC Bank's (HDFCB) annual analyst meet, wherein it showcased the breadth of its top management and discussed the progress that different businesses are making. Management, thus, highlighted the growth potential of different businesses and further discussed succession planning, digital initiatives, competitive positioning, subsidiary performance and the journey ahead. This note captures the detailed takeaways from the meet, as well as our thoughts on the bank.

HDFC Bank, the country's second largest private sector lender, Q4 Net rises 20%, meets expectations; gross NPAs largely stable HDFC Bank registered an 18% rise in Interest income to Rs 21321.08 crore in the quarter ended March 2018. An 18% rise in interest expenses to Rs 10663.37 crore saw net interest income (NII) grow 18% to Rs 10657.71 crore. Other income grew 23% to Rs 4228.58 crore, which took net total income up 19% to Rs 14886.29 crore. Operating expenses increased 16% to Rs 6050.63 crore, after which OP grew 21% to Rs 8835.66 crore. Provision and contingencies grew 22% to Rs 1541.10 crore after which PBT...

HDFC Bank Ltd. (HDFCB) posted stellar performance for Q4FY18 which came in line with our estimates. While NII growth remained healthy on the back of strong interest income, robust fee income, low C/I led to above 20% growth in profit. There was positive surprise on assets quality front with low slippage at Rs27.9 bn (Rs45.9 bn in Q3FY18) and stable GNPA at 1.3%. While, wholesale advances growth remained subdued at 11.8% YoY due to higher base effect in Q4FY18, overall advances growth at 18.7% YoY remained satisfactory bolstered by sturdy growth momentum in retail credit. HDFCB is the market leader in retail loan segment, the...

ICICI Securities Ltd | Retail Equity Research Earnings growth came in healthy at 20.3% YoY to | 2799 crore, on the back of steady topline growth. However, NII growth came in a tad lower compared to our estimate at | 10657.7 crore, up 17.7% YoY, led by lower growth in advances and higher growth in deposits Slippages came in higher than estimate at | 2790 crore, 1.72% of advances (| 2880 crore in Q3FY18 excluding steel account). Asset quality continued to remain stable QoQ with GNPA ratio at 1.3%...

BUY with target price of Rs2,400: In times of gigantic deterioration in asset quality for corporate peer bank, preference toward high quality retail banks will continue to remain. As a result premium valuation for HDFCB is fairly justified in our opinion. We value HDFCB at 4.4x P/ABV FY19E (30% premium to mean valuations) deriving a...

ff Gross NPA ratio remained well within the comfort level despite marginally rise in gross NPA ratio to 1.3% in FY18 vs. 1.1% in FY17 led by higher slippages from Agri and Corporate portfolio. Going ahead, the Bank will continue to focus on Agri book, as this segment continues to be a profitable business proposition. The Management does not expect any major impact on...