HDFC Bank Ltd. share price target

HDFC Bank Ltd. (HDFCB), the country second largest private sector bank, posted stable number for the Q3FY17 in spite of unfavorable business environment during the quarter. Double digit YoY growth in advances, deposits and net profit indicates that the bank continued to witness strong growth in business as well as profitability. We are of the view that in spite of big size, outperformance to peers will continue in terms of financial and operating parameters. Thus, HDFCB is our...

NII rose to Rs. 8309.09 Cr in Q3FY17 compared to Rs. 7993.59 Cr in Q2FY17. NII rose by 17.55% ( Rs. 1240.58 Cr ) when compared with the same period last year. The value of NII has been increasing throughout the period.

HDFC Banks' results for the quarter were broadly in line with expectations. While PAT growth of 15% YoY looks lower when compared to the historical trend of HDFC Bank, given the slow down due to demonetisation the results by HDFC can be considered decent enough. While HDFC Bank's growth has moderated from its historical levels, it still r..

ICICI Securities Ltd | Retail Equity Research PAT increased 15.1% YoY to | 3865 crore, led a by higher topline NII grew 17.6% YoY to | 8309 crore. Though slower compared to the historical trajectory, credit growth remained healthy at 13.4% to | 495043 crore, led by higher than systemic growth in both domestic retail (up 17.8% YoY) and wholesale book (up 16.8% YoY) In Q3FY17, FCNR deposits raised in Q3FY14 have seen redemption of $3 billion (~| 20000 crore). On advances, growth has been reported...

We had noted in Q2FY17 earnings review that HDFCB's balance sheet momentum was undershooting our expected growth rate, which we expected to recover in H2FY17E. Two things have to be noted: 1) retail loan growth including business banking was still a robust 18%YoY (coming off from +22%YoY in Q2FY17) with post-demonetization scenario affecting utilization of loan limits in business banking, 2) unwinding of leverage in overseas loan book linked to FCNR deposits caused shrinkage bringing down overall growth to 13.5%YoY. In hindsight, our initial estimate of a 22.5%YoY credit growth was aggressive. We had kept our revisions in abeyance for better clarity to emerge though we did feel growth would be back...

Healthy Performance in Tough Business Environment; Maintain BUY Despite adverse macroeconomic scenario, HDFC Bank has delivered healthy performance on operating and assets quality front in 3QFY17. Its PAT grew by 15.1% yoy & 11.9% qoq to Rs38.6bn led by strong growth in treasury profit (+40.6% qoq to Rs4bn) along with healthy growth in NII (+17.6% yoy & 4% qoq to Rs83.1bn). NIMs remained stable at 4.1% in 3QFY17 compared to 4.2% in 2QFY17. However, loan book grew by mere 0.1% qoq owing to 46.8% qoq decline in overseas loan book due to unwinding of FCNR deposits related loans along with 3.4% qoq decline in business banking loan book due to payback into loan accounts...

ICICI Securities Ltd | Retail Equity Research PAT increased 20.4% YoY to | 3455 crore, in line with our estimate NII grew 19.6% YoY to | 7994 crore. It was led by healthy credit growth & margins of 4.2%. Credit grew at 18.1% (vs. estimate of 22% YoY) to | 494418 crore led by higher than systemic growth in both domestic retail (up 21.7% YoY) & wholesale book (up 14.3% YoY) Among retail, unsecured loans traction continued to remain strong with growth of 40% YoY in personal loans and 19% YoY in credit...

Balance sheet momentum marginally undershooting our estimate, should improve Loan growth at 18% YoY was a shade lower than our estimate of ~19%YoY (22.5% YoY for FY17E with growth split 30:70 between H1 and H2). We expect HDFCB's loan growth to accelerate in H2FY17E. Nevertheless, some of the growth in corporate segment is happening through instruments like CPs, which explains a bit the higher growth in investments (though the higher growth is heavily influenced by FCNR redemption related liquidity invested temporarily in short term instruments). The retail momentum (based on HDFCB's internal classification) was driven by business banking and auto loans while home loans, which had...

Robust operating metrics; continue to maintain BUY Led by strong growth in NII, treasury and forex income, HDFC Bank has reported healthy growth in profit in 2QFY17. Its NII grew by strong 19.6% yoy (2.7% qoq) led by 18.1% yoy (5.1% qoq) growth in loan book. However, NIMs declined by 20bps qoq as the Bank managed to maintain higher liquidity to facilitate redemption of FCNR deposits. Deposit growth remained sanguine on account of robust growth in CASA & Retail term deposits. Maintaining our positive stance, we reiterate our BUY recommendation on the stock with...

HDFC Bank has been able to maintain its relatively superior performance in terms of asset quality (stress assets ratio below 1.3%) and margins (>4% levels) along with clocking healthy business growth (>20% YoY). Going ahead, we believe that with a revival in the economy and capex cycle, the bank may see a higher than expected trajectory in corporate book, which is ~44% of loan at | 470623 crore as on Q1FY17. Retail traction would continue to remain strong driven by personal loans, credit cards, auto and home loans. This would enable the bank to gain market share. Further,...