HDFC Bank Ltd. share price target

HDFC Bank, the country's second largest private sector lender, has reported stable set of quarterly earnings as profit grew by 20.20 percent year-on-year to Rs 3,893.84 crore in the quarter ended June 2017. Non-interest income, operating profit and in line with the estimated net interest income boosted earnings but sharp spike in provisions limited growth. It has registered 13% rise in Interest income to Rs 18668.72 crore in the quarter ended June...

ICICI Securities Ltd | Retail Equity Research On the asset quality front, GNPA increased 23% QoQ to | 7243 crore after a surge of 12% QoQ already seen in Q4FY17, primarily on account of agricultural NPA (60% of fresh addition) led by farm loan waivers. GNPA ratio surged 19 bps to 1.24% vs. 1.05%. Net non performing assets (NNPA) were at 0.44%. Accordingly, provisions increased to | 1559 crore, up 80% YoY and 23% QoQ. The bank has enhanced specific provision coverage for its agricultural NPA book...

Despite adverse operating environment, the Bank continued to deliver strong performance on business growth as well as operating and assets quality fronts. It has been consistently outperforming its peers both in financial and operational fronts backed by strong liability franchise, low exposure to stressed sectors and superior risk management practices. We have revised our loan growth target to 20-21% from earlier estimate of 17-18% led by relatively higher loan growth over last two quarters. As a result, we have upwardly revised our earnings estimates by 1.9% and 3.1% for FY18E & FY19E, respectively. We maintain our BUY recommendation on...

We initiate coverage on HDFC Bank Ltd as a BUY with a price objective of Rs 2174, which represents a potential upside of 33.1% from the CMP of Rs 1632.

Asset quality continued to remain stable as Gross and Net non-performing asset (NPA) ratios stood at 1.1% (no change QoQ) and 0.3% (1 bp QoQ), respectively. Notably, there was no asset quality related discrepancy reported by the RBI for FY16 under IRACP (Income Recognition, Asset Classification and Provisioning) norms. Overall, the bank has maintained robust asset quality over the last ten years. Further, negligible pool under stressed assets coupled with Rs1,250cr of floating provisions lend more comfort. Hence, we...

Growth continued to be led by retail loans (now 51% of loans; up 27% YoY), with personal loans and business loans (up 35-43% YoY) leading the charge.

There was a jump in NPAs, none of which though related to any deviation in RBI and HDFCB's asset classification per IRACP, which was a notable positive. The management, as always, did not leave any specific guidance on growth. The usual equations relative to systemic growth are now redundant. We believe HDFCB is likely to deliver...

Growing business with stable assets quality ' HDFC Bank Ltd. (HDFCB) reported a healthy set of numbers for Q4FY17, recording strong growth in NII and improvement in operating parameters. Country's second largest private sector bank, despite the big size continued to outperform the industry in terms of business growth. During the quarter, NII increased by 21.5% YoY while the NIM improved by 20 bps to 4.3% in spite of the challenging macro economic scenario. We believe that despite of big size, outperformance to peers will continue in terms of financial and operating parameters. Thus, HDFCB...