Oswal Motilal Research Report on HDFC Bank
HDFCB reports an online quarter, with the growth of NII / PPOP 13% / 10.5% YoY. Pat grew 18% YoY to INR103.4B (in line). Profitability stands stronger even though the bank creates an additional provision of INR9B, takes a total buffer to ~ INR86.4B (~ 70bp loan). The bank witnessed a healthy pickup in business because loans grew 5.2% Qoq. The retail segment grew 13.3% YoY, while commercial and rural banking rose at 29.4% strong. Casa deposites grew 24.6% yoy and mixture now at 47.1% (+ 30bp Qoq). On the asset quality front, the GNPA / NNPA ratio was enhanced by QoQ 9BP / 3BP to 1.26% / 0.37%, with Slippage in INR46B (1.6% loan). The restructured book is moderated by ~ 1.4% loan (V / S 1.5% in 2QFY22). Management says the net impact of the restructured book on the NPA is likely to be 10-20bp. Coverage of healthy provisions, along with the continuent allowance allowance, provide comfort to the quality of assets.
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Coverage of healthy supply and continuquental allowance allowance provides convenience on asset quality. Take loan growth, especially retail, will help NII and margins, which will encourage profitability in the future quarter. We estimate HDFCB to provide ~ 20% Pat CAGR through FY22-24E, with ROA / ROE 2.1% / 18.1% in FY24E. We maintain our purchase rating with TP INR2K (3.6x Sep’23e ABV + INR119 from its subsidiaries).
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At 16:00 HDS HDFC quoted at Rs 1,521.55, down RS 23.70, or 1.53 percent.
It has touched the highest intraday RS 1,556.45 and low intraday Rs 1,519.65.
It traded with a volume of 448,365 shares, compared with an average of thirty days 294,421 shares, increased by 52.29 percent.
In the previous trading session, shares closed up 1.11 percent or 16.90 Rs at Rs 1,545.25.
This section touched Rs 1,724.30 and 52 weeks Rs 1,342.30 and 52 weeks October 18, 2021 and January 28, 2021, respectively.
At present, it is traded 11.76 percent below 52 weeks and 13.38 percent above the lowest level of 52 weeks.
Market capitalization stands at RS 843,303.79 Crore.