HDFC Bank Q3 Results Review - Inline Earnings; Core PPoP Growth Improves: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.HDFC Bank Ltd. reported an inline quarter. Profit after tax was up 19% YoY, supported by a pickup in net interest income growth and controlled provisions. Net interest margins stood stable QoQ. Pre provision operating profit growth remained modest at 13% YoY. However, core PPoP grew by a healthy ~19% YoY.Loan growth was driven by strong traction in commercial and rural banking and retail loans. The corporate book witnessed a marginal QoQ decline.  HDFC Bank's asset quality ratios remained stable even as slippages were high at Rs 66 billion due to high agri slippages. The restructured book declined to ~42 bps of loans (versus 53 bps in Q2 FY23). Healthy provision coverage ratio of ~73% and a contingent provision buffer (62 bps of loans) should support asset quality. We estimate a ~19% PAT compound annual growth rate over FY22-25, with return on asset/return on equity at 2.0%/17.7% in FY25. We expect the stock to perform gradually as the margin profile revives and the merger-related overhang eases (bank aims to complete the merger by Q1/Q2 FY24).Click on the attachment to read the full report:.HDFC Bank Q3 Results: Net Profit Up 18.5%, NII Rises 24.6%.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Bank Q3 Results Review - Inline Earnings; Core PPoP Growth Improves: Motilal Oswal

Pre provision operating profit growth remained modest at 13% YoY.

Choose a plan