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.
Prabhudas Lilladher Report
Housing Development Finance Corporation Ltd. saw a good quarter with core pre-provision operating profit beating our estimate by 12% led by better net interest income/net interest margin and higher assignment income.
Asset quality was stronger as gross non-performing asset reduced QoQ from 1.5% to 1.2% due to higher recoveries. Net assets under management growth was softer at 9.2% YoY due to 11% drop in non-individual which has been run down to comply with merger.
We see superior AuM growth at 12% in FY24/25E as bulk of run-down has been effected and HDFC expects home loan momentum to sustain.
HDFC would need to build-up liquidity coverage ratio before merger since LCR as per bank norms is ~75% (reported 128%). While we await clarity on the LCR need to assess the net interest margin impact, HDFC Bank does hold excess statutory liquidity ratio.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
