IGI Logo

Below are Quote on HDFC Bank Q4FY21 numbers by Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd

HDFC Bank reported a 12.6% YoY increase in Net interest income to Rs. 17,120 crore. While Interest income for the quarter was up by 1.8% YoY Interest expended was down by 9.4% YoY. NII growth for the quarter was driven by advances growth of 14.0% YoY to Rs. 11.32 Lakh cr. while reported NIM for the quarter stood at 4.2%. Other income for the quarter was up by 25.9% YoY to Rs. 7,594 crore. Cost to income for the quarter stood at 37.2% down by ~183 bps YoY. Pre provisioning profits for the quarter was up by 19.9% YoY to Rs. 15.533 crore. Provisions for the quarter were up by 24.0% YoY as the company made additional provisioning of Rs. 1300 crore during the quarter as a precautionary measure. Profits for the quarter was up by 18.1% YoY to Rs. 8,187 crore. Deposits for the quarter were up by 16.3% YoY while share of low cost CASA deposits increased by 380bps YoY to 46.0%. Overall HDFC Bank delivered another solid quarter of earnings growth with GNPA and NNPA at 1.32% as compared to 1.38% last quarter on a pro forma basis. Met NPA for the quarter stood at 0.4% while PCR stood at 70%. At current levels the stock is trading at P/BV of 2.9xFY23 book which is below historical average. Post the Q4FY21 numbers we continue to maintain our positive stance on HDFC Bank and it remains one of our top picks in the large cap banking space.

Above views are of the author and not of the website kindly read disclaimer