- 22 Apr 2024
- ICICI Securities
FOR Q4FY24, OPERATIONAL PERFORMANCE OF HDFC BANK REMAINED STEADY
HDFCBANK - 1744 Change: 6.05 (0.35 %)News: For Q4FY24, operational performance of HDFC Bank remained steady, however, variation in terms of one-off including gains from stake sale in subsidiary, ex-gratia provision for staff and creation of floating provision kept earnings broadly flattish. NII grew 2.1% QoQ, margins improved by 4 bps at 3.44% while other income surged led by gain of ₹7340 crore related to stake sale in HDFC Credila Financial Services. However, the bank utilized the gains to shore up contingent provision by ₹10900 crore. Ex-gratia staff provision kept opex a tad higher during the quarter. Asset quality remained broadly steady with GNPA at 1.24% and NNPA at 0.33%.
Views: While operational performance remains steady, one-off gains are utilized to strengthen balance sheet. Strategy to increase distribution capabilities and focus on garnering retail liabilities with stable return ratios is seen to aid valuation.
Impact: Positive