HDFC Bank Q4 Results Review: ICICI Securities Maintains 'Buy'; Hikes Target Price To Rs 2,200

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. 

ICICI Securities Report

HDFC Bank Ltd. reported Q4 FY25 PAT of Rs 176 billion (RoA steady at ~1.9%) led by stable core net interest margin QoQ and contained opex. Deposits growth (14% YoY) remains driven by term deposits (20% YoY) while CA grew 18% QoQ (up 1% YoY) due to seasonality.

Reported NIM (up 11bps to 3.73%) was aided by Rs 7 billion of interest on IT refund while asset quality was stable. Adjusted for IT refund, NII growth was reasonable at ~3% QoQ (up 8% YoY), as against loan growth of 4% QoQ (up 5% YoY).

Core NIM is broadly stable at ~3.65%, though could have been favourably impacted by strong CA jump and lower agri slippages. Opex growth (7% YoY on adjusted basis) remains calibrated and continues to offer cushion against moderating revenue growth.

Adjusted core pre-provision operating profit growth was reasonable at ~5% QoQ (10% YoY). Liquidity coverage ratio dipped to 119% (versus 125% QoQ).

Click on the attachment to read the full report:

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.