HDFC Bank Q3 Results Review - Wholesale Loans De-grow Due To Unattractive Pricing: Yes Securities

Yes Securities Report

Wholesale loans (excluding  inter-bank participation certificate) de-grew down 1.1% QoQ since HDFC Bank deliberately gave up about Rs 300-400 billion worth of wholesale loan business due to unattractive pricing.

Management averred that there is no problem with wholesale loan demand, which is coming in from the non-banking financial companies, public sector undertaking, retail and infra segments and weakness in wholesale loan growth for the bank may be transient.

HDFC Bank added 684 branches during the quarter, taking branch count to 7183. Also, 978 branches were activated for gold loans during the quarter, taking branches activated for gold loans to 3938.

On the employee front, 5863 people were added during the quarter. There was a tranche of restricted stock units and employee stock ownership plan cost worth Rs 2.5-3 billion.

Slippages for the quarter were Rs 66 billion or 42 bps of advances (non-annualised). Covid-19 restructured book amounted to Rs 64 billion or 42 bps of advances.

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More Research Reports On HDFC Bank's Q3 FY23 Results Review

• Stable Quarter; Slight Surprise On Net Interest Income: Dolat Capital

• Beat In Estimates; Deposits Accretion Remains Key: ICICI Direct

• Credit Growth Slightly Down; Stable Net Interest Margins: IDBI Capital

• Inline Earnings; Core PPoP Growth Improves: Motilal Oswal

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