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Below is quote on HDFC bank Q2FY22 results by Mr. Jyoti Roy - DVP- Equity Strategist, Angel One Ltd

HDFC Bank reported a 12.1% YoY increase in Net interest income to Rs. 17,684 crore driven by advances growth of 15.5% YoY to Rs. 12 Lakh cr. while reported NIM for the quarter stood at 4.1%. Pre provisioning profit for the quarter was up by 14.4% YoY to Rs. 15,807 crore. Provisions for the quarter were up by 6.0% YoY as the company made contingent provisioning of Rs. 1,200 crore during the quarter. Profit for the quarter was up by 17.6% YoY to Rs. 8,834 crore. Deposits for the quarter were up by 16.3% YoY while the share of low cost CASA deposits increased by 135bps QoQ to 46.8%. Overall HDFC Bank delivered another solid quarter of earnings growth while there was an improvement in asset quality with GNPA improving to 1.35% from 1.47% in Q1FY22 while slippages reduced to 1.8% of loans. Net NPA for the quarter stood at 0.40% while PCR improved to 70.4%. At current levels the stock is trading at 3.4xFY23 adjusted book which is below historical average. Post the Q2FY22 numbers we continue to maintain our BUY rating on HDFC Bank with a target price of Rs. 1862.

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