HDFC Q3 Results Review - Another Good Quarter; Asset Quality, Coverage Improves Further: Yes Securities

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. .Yes Securities Report.Housing Development Finance Corporation Ltd.’s Q3 FY23 performance was largely in-line with expectations with a mild miss on core pre-provision operating profit offset by lower credit cost. Softer-than-expected core PPOP growth (3.8% QoQ/10.6% YoY) was caused by a deceleration in assets under management growth (1.6% QoQ/13% YoY) even as net interest margin/spread performance was slightly better (cumulative NIM improved). On asset quality front, reduction in stage-II and stage-III continued and the coverage was enhanced again. Annual growth in individual loans moderated to 17.6% YoY from 20% YoY as of the preceding quarter with the disbursements being 9-10% lower QoQ. Higher holidays impacted originations in October and November; however, December has witnessed a return to normal trajectory. HDFC's management does not expect any durable impact on home loan demand/growth from recent rate hikes. Annualised pre-payment rate stayed put around 10%, in-line with historical trends..Click on the attachment to read the full report:.HDFC Q3 Results Review - AUM Growth Slowdown; Net Interest Margins Improved: IDBI Capital.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 Q3 Results Review - Another Good Quarter; Asset Quality, Coverage Improves Further: Yes Securities

We continue to believe that merger is beneficial for HDFC’s shareholders.

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