HDFC Bank’s business momentum picks upHDFCBANK - 1321 Change: 33.90 (2.63 %)
News: HDFC Bank posted a steady operating performance with NII growth of 13.0% YoY and 4.3% QoQ to Rs.18443 crore, primarily helped by stable NIMs at 4.1% on a sequential basis and 5.2% QoQ uptick in advances. Due to lower credit cost, net profit for the bank came in at Rs.10342 crore, up 18.1% YoY. Asset quality improved on a sequential basis as GNPA and NNPA declined 9 bps and 3 bps QoQ to 1.26% and 0.37%, respectively. Loan growth gained momentum sequentially and advances were up by 16.5% YoY and 5.2% QoQ to Rs. 12.6 lakh crore. Deposit accretion was decent at 13.8% YoY to Rs.14.4 lakh crore, CASA ratio increased from 41.6% to 47.1% YoY.
Views: In our view, HDFC Bank has delivered healthy performer in terms of growth and asset quality. With focus on new segments, geographies and building up physical and digital capabilities to aid competitive strength. Focus on high yielding loans and improvement in CD ratio should lead to uptick in margins ahead which, in turn, should drive steady profitability.