Published on 21/04/2017 5:25:02 PM | Source: Angel Broking Pvt Ltd

We have an Accumulate rating on HDFC Bank Ltd By Mr. Siddharth Purohit - Angel Broking

Posted in Expert Views | #Banking Sector #Expert Views #HDFC Bank #Angel Broking Pvt Ltd #Mr. Siddharth Purohit


Below is the views on HDFC Bank back on growth trajectory By Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking Pvt Ltd)

“HDFC Bank came out with good set of results for the quarter. Advances growth which had seen moderation in Q3FY17 picked up during the quarter and reported a 19.4% growth. Deposit growth too has been strong at 17.8%. The CASA ratio continues to strengthen further for the bank and reached 48% for the quarter compared to 45.4% QoQ. NIM also continued to see uptick and moved to 4.3% vs 4.1% QoQ. While in absolute terms provisions has gone up by INR 546 cr, almost half of the incremental provisions can be attributed to the general growth in loan book and standard asset provisions there on.   Further INR 100 cr of these provisions were related to the forbearance used in the previous quarter as per RBI’s notification. So if we look at the provision numbers from qualitative perspective it has been in sync with business growth. What is encouraging is that despite the impact of demonetization the bank has been able to maintain stable asset quality with GNPAs and NNPAs of 1.05% and 0.33% respectively and delivered a bottom-line growth of 18.3% YoY to INR 3990 cr. At the CMP the stock is valued at 3x its FY19 BV and we have an ACCUMULATE rating on it.” 

 

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