HDFC Bank Q3 Results Review - NIM Beat Also Led By Favourable Asset Mix: Prabhudas Lilladher

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. .Prabhudas Lilladher Report.HDFC Bank Ltd. saw a good quarter with core profit after tax of Rs 118 billion beating our estimate by ~6% led by stronger net interest income and other income (excluding treasury) while provisions were lower. Net interest margin was higher by 11 bps at 4.84% due to superior yields driven by faster asset repricing, while cost of funds was a tad lesser. Retail wholesale mix improved QoQ from 43:57 to 45:55 led by stronger retail accretion (due to healthy consumption spends) and de-growth in corporate (owing to pricing pressure and widening bond spreads). Retail deposit accretion was strong at 5% QoQ and its share is now 84% (80% in March 2022). HDFC Bank added 684 branches in Q3 FY23 while it intends to add 600 more branches in Q4 FY23 which would keep opex elevated. We upgrade FY23 earnings by 3% led by higher NII and lower provisions..Click on the attachment to read the full report:.More Research Reports of HDFC Bank's Q3 FY23 Results Reviews.HDFC Bank Q3 Results Review - Better Than Expected NII Growth Offset By Elevated Opex: ICICI SecuritiesWholesale Loans De-grow Due To Unattractive Pricing: Yes SecuritiesIn A Capex Investment Mode; Opex Could Remain Elevated: SystematixStable Quarter; Slight Surprise On Net Interest Income: Dolat CapitalBeat In Estimates; Deposits Accretion Remains Key: ICICI DirectCredit Growth Slightly Down; Stable Net Interest Margins: IDBI CapitalInline Earnings; Core PPoP Growth Improves: Motilal Oswal.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 - NIM Beat Also Led By Favourable Asset Mix: Prabhudas Lilladher

NIM was higher by 11 bps at 4.84% due to superior yields driven by faster asset repricing, while cost of fund was a tad lesser.

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