HDFC Bank Q4 Results Review - Net Interest Margins Improved Slightly; Guided RoA To Sustain: IDBI Capital

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.HDFC Banks Ltd. net interst margin improved by 4 basis points QoQ to 3.44% led by increase in yields while cost of funds remained flat. Further, management guided for NIM attrition will be function of high rate bonds replacement with deposits. Deposits grew by 7.5% QoQ (merged basis) led by retail term deposits while gross advances grew by 1.6% QoQ (merged basis) led by CRB book. HDFC Bank's asset quality remained stable as gross non-performing asset stood at 1.29% versus 1.26% QoQ (merged basis). Net interest income grew by 2% QoQ while pre-provision operating profit grew by 24% QoQ due to higher other income. Profit after tax grew by 1% QoQ led by negative tax rate. We have downgraded FY25E/FY26E estimates (down 6%/5% respectively) led by lower loan growth and stable margins. We maintain Buy rating with the target price of Rs 1,872 (earlier Rs 2,090) valuing parent business at Rs 1,694 (2.2 times price/adjusted book value FY26 earlier 2.5 times as margin improvement to be seen)..Click on the attachment to read the full report:.HDFC Bank Q4 Results Review - Inline Numbers With Focus On Profitability Intact: Systematix.DISCLAIMER This report is authored by an external party. NDTV Profit 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 NDTV Profit. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Bank Q4 Results Review - Net Interest Margins Improved Slightly; Guided RoA To Sustain: IDBI Capital

We remain structurally positive on HDFC Bank given its superior credit underwriting, and the ability to maintain stable RoA post-merger.

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